When is a liquidation practitioner needed?
You’ll need to appoint a licensed practitioner for all formal company liquidations, including:
Liquidation Practitioner
If you’re closing down your limited company by liquidation, you’ll need to appoint a liquidation practitioner to manage the process. A liquidation practitioner is a licensed professional, formally known as an Insolvency Practitioner, who takes charge of winding up the company in line with UK law.
What does a liquidation practitioner do?
Liquidation practitioners are responsible for the full legal closure of the company. This includes:
- Taking control of the company
Your chosen practitioner will take over responsibility for the business and manage the whole company closure process from start to finish. This can be a great relief for many Directors, as managing creditors and overdue debts can be overwhelming. - Selling company assets
They value and sell company assets, usually through auction or private sale, to raise funds to pay creditors. - Communicate with your company’s creditors
The practitioner contacts all known creditors, verifies their claims, and distributes the company funds in order of priority. - Filing reports
They’ll submit regular reports to Companies House and The Insolvency Service throughout the process. - Assisting directors
Ensuring you have followed your legal duties as a Director is really important for the liquidation. Practitioners will guide you on what you need to do and what’s expected from you before the liquidation begins.
Creditors’ Voluntary Liquidation (CVL)
A CVL is often the best route for insolvent companies that cannot pay their debts.
Compulsory Liquidation
Compulsory liquidation is usually ordered by the court when a creditor has issues a winding-up petition.
Members’ Voluntary Liquidation (MVL)
When a company is solvent, meaning it can pay its debts, an MVL helps to close it down in a tax-efficient way.
How do I choose the right insolvency practitioner?
Choosing the right practitioner can make a big difference to your experience the liquidation. It’s worth checking:
- They’re fully licensed – Always check that an Insolvency Practitioner is registered with a recognised UK regulatory body.
- They’ve handled similar cases – You can ask for examples of their experience in your industry or situation, or check for reviews on Google or Trustpilot.
- They’re clear on fees and timelines – You should receive a full breakdown of costs and how the process will work.
- You’re happy with their level of communication – A good practitioner will keep you informed every step of the way, and you should feel comfortable asking them questions.
Speak to a trusted liquidation expert
Our team is made up of trusted licensed practitioners who are experienced, regulated, and ready to help. If you need advice or want to understand the next steps, we’re here to talk.
