Company Voluntary Liquidation Debt Solutions
Liquidation is the closure of a limited company. A liquidator is appointed to sell the assets and collect any debts owed. If the company is unable to repay its debts the process is called Creditors Voluntary Liquidation (CVL).
If a company has outstanding debts the Liquidator will try to repay as much of these as is possible. They will first pay their own fees and any secured creditors.
Any employees including directors will also receive limited redundancy payments. Then if there is any cash remaining this is divided between the unsecured creditors.
Given that the company is insolvent the unsecured creditors will normally only get a small percentage of what they are owed if anything at all.
The costs of Liquidating a company are normally met from the sale of company assets. If no funds are available the directors or a third party would need to cover these costs. The costs vary on a cases by case basis starting at £3,000 + VAT.
Should you decided to Liquidate a company a Licensed Insolvency Practitioner (IP) must be appointed. The IP calls a creditor’s meeting to appoint a Liquidator and at this point the liquidation process can get underway.
At Orchard Debt Solutions we work with a panel of Insolvency Practitioners and the most suitable IP will be selected for your circumstances. We will work closely with yourself and the IP to ensure that the process is hassle free from start to finish.
- Outstanding debts are written off.
- Relatively low costs involved.
- Avoid court processes.
- Staff can claim redundancy pay.
- Accusations of wrongful trading/li>
- Personal liability for company debts.
- All business assets will be sold.
- Staff will be made redundant.