The usual way to do this is by a liquidation called a Creditors Voluntary Liquidation. We do all the paperwork for you and the process takes about ten days.
Liquidation is the proper way to close down an insolvent business that cannot be rescued. It means the company will stop trading and any shops, offices, workshops or factories will be closed down.
The directors appoint a Licensed Insolvency Practitioner, like us, to carry out the closing down process.
All the employees will be made redundant and it allows the employees to claim from the Government Redundancy Fund.
The company fixed assets and any stock will be valued by a qualified agent and will be sold off as a private treaty sale or by auction.
We write to all creditors (so suppliers, VAT, PAYE, business rates, banks and any finance companies) so they start to deal with us.
The overall purpose of liquidation is to get in and sell the assets to pay back some or all of the money owed to the creditors.
Once you instruct us we will and take the pressure off you and deal with your creditors.
Creditors Voluntary liquidation is a three stage process. It is normal for the person the directors chose to be the liquidator unless the shareholders or creditors object. They can nominate a different liquidator if they want to.
We normally agree a fixed fee to liquidate a company which covers putting the company into liquidation and notifying all the creditors. This is often between £3,000 and £5,000 plus vat.
There is then a second part to the fee post appointment which we must agree with creditors for the work we do. This is usually reported to creditors as a fee forecast estimate that they vote on to approve. We will also recover any direct disbursements such as statutory advertising.
If you want to find out more just call or email me and ask any question. If you want a meeting we can do this by Zoom or Teams.
Before you start the process we can meet in person or by Zoom/Teams to discuss the process and any questions you have.
Liquidation can be a daunting process and you may have many questions. To give you a clearer picture and understand the process we have put together a Frequently Asked Questions (“FAQs”) page that can answer some of the questions you may have and shed light on the different procedures available. View all our liquidation FAQs here or click the links below to view the most popular articles:
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Licensed Insolvency Practitioner