Liquidation
It is extremely easy to become overwhelmed when sieving through online information regarding company liquidation and the entire process behind it.
Below, we have put together a structured and much simpler guide in regards to how to liquidate a company to give you a better understanding of the procedure you and your company would be required to go through.
1. Choose the right insolvency practitioner
– Firstly, you will review your business and workout if liquidation is the best and most suitable option for your company.
– Next, you will choose a regulated insolvency practitioner who will guide you through the entire process.
– The regulated practitioner will collect all of your company’s information including assets, company accounts, cash flow information and also company records.
– They will also include a review of your company’s financial position.
The proposal of the liquidation will then be published in the Gazette, which is now exclusively published online. This part of the process is mandatory as it enables creditors present their claims to the correct party.
2. Meeting with the creditors
– Any creditors then that propose a claim are communicated with (they are given a specific deadline to respond).
– They will be made aware and given noticed at least a week before the process goes ahead.
– Due to Covid 19, the meetings with creditors can now be conducted virtually.
– These meetings are entirely confidential.
– The creditors then can decide if liquidation is in fact the best possible outcome for you and your business.
The liquidation of a company’s assets means the liquidator will sell the businesses assets for the highest possible price in order to pay off any company debts. Once all of the assets are auctioned off, the cost of the liquidation (the cost of the insolvency practitioners) will be reimbursed.
In the circumstances that your business does not have any assets, there are 2 different ways you can choose to liquidate your company;
1. You can come to an instalment agreement between you and your liquidator in regards to how much you can pay back and how often.
2. Your insolvency practitioner may be able to withdraw some of the director’s redundancy claim to be able to fund the liquidation.
The process of liquidation
1. You decide that the liquidation of your business is the best thing for you and your company and reach out to Lucas Ross – Business Rescue, Recovery & Insolvency
2. Our friendly insolvency advisors will discuss all of your possible options and review whether the liquidation process will be best for you and your company.
3. Once you and our insolvency advisors come to an agreement regarding the liquidation, we will refer you to one of our regulated insolvency practitioners.
4. You will then be able to have a conversation with your practitioner and come to the agreement that they will act on your behalf.
5. Our insolvency practitioners will then be able to collect all of your creditor’s information.
6. The creditors then will enable your insolvency practitioner as your liquidator.
7. Then, the process of liquidation will commence.
8. Your insolvency practitioner will then begin to sell your assets (if any are available) for the highest market price.
9. Remaining money, once fees are paid, is then given to the creditors.
10. Your insolvency practitioner will then look into the activities of the director to ensure there are no issues with the company. Any findings are reported to the DTI.
11. If there are no findings, and your insolvency practitioner is happy after their investigation, you are then able to make a fresh start!
If you would like any further information then do not hesitate to contact Lucas Ross – Business Rescue, Recovery & Insolvency on 0330 128 9489 or email us at help@lucasross.co.uk
