Liquidation is a formal process for closing a limited company. It can help companies in financial distress pay creditors or allow solvent businesses to release assets.
Once the process is complete, the company is officially dissolved and removed from the Companies House register. The type of liquidation your company needs depends on whether it is solvent or insolvent.
If you’re unsure whether your company is solvent or insolvent, start with a free, no-obligation financial health check.
A company in financial distress can quickly become unmanageable. Don’t delay getting expert advice; we are here to help you understand your next steps.
A Members’ Voluntary Liquidation (MVL) is used to liquidate a solvent company that is financially healthy but no longer needed.
During an MVL, we will help by:
When a company can’t pay its debts, a Creditors’ Voluntary Liquidation (CVL) can be used to voluntarily close it down.
During a CVL, we will help by:
A compulsory liquidation is when a company is forced into liquidation by creditors. The process begins when a creditor issues a winding-up petition and the court orders liquidation.
Immediate advice is crucial, as once the court is involved:
Need to speak to a liquidation expert today? A company in financial distress can quickly become unmanageable, don’t delay getting expert advice. We are here to help you understand your next steps. Contact us today.
✓ Protect yourself legally
By liquidating voluntarily, directors of insolvent companies reduce the risk of wrongful trading accusations, which could lead to personal financial liability.
✓ Stop creditor pressure
Liquidating stops creditors’ demands, and you can hand over all communications to the liquidator. We’ll deal with the stress so you don’t have to.
✓ Get close and take control of your future
If your company is solvent, liquidation helps you close the company properly, allowing you to access your assets and plan for the next chapter.
Liquidation costs vary depending on factors like company size, asset value, and the complexity of the process. During your consultation, we’ll provide a clear breakdown of costs. Get started by getting your free liquidation quote.
Whether it’s an MVL or CVL, liquidation services in the UK must be handled by a licensed Insolvency Practitioner. They’ll oversee the entire process, ensuring assets are dealt with appropriately, and creditors are treated fairly.
For solvent companies, remaining funds will be shared among shareholders. For insolvent companies, the practitioner ensures proper distribution to creditors.