Insolvent liquidation – learn how and when to liquidate a company

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Insolvent liquidation learn how and when to
liquidate a company
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Insolvent liquidation

• The most important part of what we do is to
  understand your situation and reassure you that
  youre not alone in facing it were here to
  help you with the pros and cons of
  liquidation.This page will give you an overview
  of what is insolvent liquidation, when to
  liquidate a company and how to liquidate a
  company.
• What is insolvent liquidation?
• Insolvent liquidation is a method used to close a
  UK limited company that doesnt have enough cash
  to pay all those owed money (creditors). The
  assets of a company are turned to cash and paid
  to the creditors, usually through a process
  called Creditors Voluntary Liquidation (CVL).
• A CVL can be instigated by the directors and
  shareholders when they agree theres not enough
  assets to cover the company liabilities. A
  liquidator or licensed insolvency practitioner
  has to take over from here to close your company,
  sell the assets and pay off creditors as far as
  possible.
• Getting the right advice early on will protect
  the directors of your company and might even save
  you money later down the line. Call 0800 054
  6580, for free advice on a Creditors Voluntary
  Liquidation (CVL)
• .

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When to liquidate a company?
As industry experts, we understand that no
business wants to declare itself insolvent. This
normally happens when a company is unable to pay
its bills or has far more liabilities than
assets. To see if this applies to you, take our
cash-flow and balance-sheet tests. Liquidation
might also be the best option when you find
yourself in one of these situations A winding
up petition is being threatened or has been
presented against your company. The outcome of a
court case is expected to go against your company
and it cant pay the likely award. The business
of your company is no longer viable. Your company
wont be able to pay employees wages. The
landlord is threatening re-possession of your
companys premises. Enforcement action is being
taken by those owed money by your company. Your
business has had to cease suddenly due to
unforeseen circumstances. .
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How to liquidate a company?
Before the process starts, you need to appoint a
licensed insolvency practitioner (if you havent
already). Theyll become the liquidator. The most
common type of insolvent liquidation is the
Creditors Voluntary Liquidation (CVL), which
your insolvency practitioner will guide you
through, disposing of your companys assets in
order to settle its liabilities. Theyll
alsoGet shareholders approval. A meeting will
be called, inviting all shareholders to attend.
At least 75 of shareholders (by value of the
shares held) must agree to the liquidation, or
winding up. If this happens then a winding up
resolution is officially approved. Handle the
winding up resolution. This must be sent to
Companies House within 15 days of it being
passed. Your firm will be removed from the
Companies House register and will cease to
exist. Send a notice of the insolvent
liquidation to The Gazette. Established in 1665,
this is the official public record containing,
among other things, details of businesses going
through the insolvency process. Talk to
a Creditors Voluntary Liquidation (CVL)
specialist for free advice on your situation.
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https//www.liquidation.co.uk/