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Creditors Voluntary Liquidation

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Creditors Voluntary Liquidation

Creditors Voluntary Liquidation is started by the Directors, they inform the shareholders the company is not viable, it is insolvent and that they must stop trading. The shareholders then ask a licensed Insolvency Practitioner to begin a decision procedure as soon as possible (not less than 14 days notice is required, unless consent has been received but it’s usually 21 days). At this decision procedure, the creditors vote to appoint a liquidator.

It’s very common, quick and a very powerful way to liquidate a company and deal with things properly. You can then commence a new company or job, the old company is closed, leases cancelled and all the staff made redundant. Depending on their length of service, staff and Directors may be entitled to a redundancy claim

Once the liquidator has been appointed he or she runs the liquidation, calls all meetings, and realises all assets, if any, for the benefit of the company’s creditors.

As soon as a Liquidator has been appointed, the Directors duties and obligations in respect of the company cease and are effectively taken on by the Liquidator.The Directors are in a position to make a fresh start, in the same line of business with a new Company, or they can exit the market and move onto new opportunities.

Once the Liquidation is complete, the company is dissolved, struck off the register at Companies House, and ceases to exist.

To discover your options FREE call 0800 3277 891. All our advice is FREE, confidential and tailored to you and your company.

Asset valuation is the process of assessing the value of a company, property or any other item of worth. Asset valuation is commonly performed prior to the liquidation. Assets can include stocks, bonds, buildings, equipment and intangible assets such as brands, goodwill and work in progress. As a result, asset valuation often consists of both subjective and objective measurements.

When valuing a company, an independent valuer will look at the book value of assets and the market value of assets. The book value is generally lower than market value because assets are listed at their historical cost. Common methods for determining an asset’s value include comparing it to similar assets and evaluating its future potential, acquisition cost, replacement cost and accumulated depreciation.

Although HMRC will not chase you as quickly as your day to day trade creditors, when they do the consequences can be severe. Therefore, if you have fallen into arrears with them, it is essential to act quickly.

If you fail to pay the Tax you owe and ignore correspondence from HMRC, their next step will be to send a bailiff to your trading premises to recover the Tax owed using a process called distraining (take your assets to sell them). HMRC have to give you notice before they take your assets away.

Once HMRC have given you notice of this, the only way to avoid them from taking your assets is to pay the Tax arrears or use an insolvency process.

If this has happened to you, or you have been ignoring your Tax problems for a while, it is essential that you contact us immediately as your situation is extremely severe.

Employees and Directors do have statutory rights and may claim from the National Insurance Fund via the Redundancy Payments Office. It should be noted that statutory rights may differ from contractual rights.

Employees are entitled to claim for arrears of pay, accrued holiday entitlement, redundancy and compensation for not receiving proper statutory notice.  These are all paid according to the statutory limit which is currently £489 per week.

Directors are also able to claim redundancy entitlements on the insolvency of their companies but to do so they must prove that they were employees of their company.

Directors will be asked by Redundancy Payments Office to complete an additional form to determine their employment status.
The average claim for a director is between £7,000-£14,000 depending on the length of service

Step 1 – DAY 1
Hold Board Meeting to convene General Meeting of shareholders to place the company into Liquidation.
Step 2 – DAY 2 – 4
Arrange for company assets to be professionally valued
Step 3 – DAY 2 – 5
Collect company records and obtain details of the reasons leading to the current financial position
Step 4 – DAY 5 – 14
Prepare reports and supporting documents for the Creditors decision procedure
Step 5 – DAY 14 – 20
Reports and supporting documents are forwarded to the director(s) to review
Step 6 – DAY 21
General meeting of Shareholders and Creditors decision procedure is held and the company is placed into voluntary liquidation
Step 7 – DAY 22
You, the director, can now concentrate on your next venture without any stress

How We Work

Consult

We offer ALL Directors a FREE, no obligation, confidential consultation on their business issues.

Engage

Once you officially engage our services we will start the liquidation process.

Relax

Now the formalities are over you can sit back and relax. Our qualified and experienced team will take it from here.

Our Promise To You

Whether providing free advice or welcoming a client we pride our-self on providing the highest level of professionalism, guidance, confidentiality throughout. It is important to us that every Director gains the knowledge they need to make informed decision on their own and companies future. We never underestimate the effect this can have on Directors personal lives and family.

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How To Find Us

Business Helpline Lagan House, 1 Sackville Street, Lisburn, Northern Ireland, BT27 4AB Email:info@business-helpline.com Telephone:0800 3277 891