FREE IMPARTIAL ADVICE
We have compiled a list of the most frequently asked questions we receive. If you have any questions which haven't been answered, please get in touch or complete the form a the bottom of the page.
Am I personally liable, and will I lose my home?
Generally, no. If you operate as a limited company, your personal assets are protected, and liabilities remain within the company. Exceptions include situations where you have given a personal guarantee to a creditor or owe money to the company. In such cases, creditors can seek payment from you personally. However, under normal circumstances, you will not lose your home or be personally liable for company debts. Read More
Can I be a director of another limited company in the future?
Yes, absolutely. You can set up and run a new limited company immediately. The liquidation process does not disqualify you from being a director again. There are some restrictions on the names and branding you can use, but these can be discussed further in another session. The government encourages entrepreneurs to continue contributing to the economy by setting up new businesses. Read More
How much does liquidation cost?
The cost of liquidation depends on the size of your company and its complexity. For a standard liquidation with minimal assets and creditors, the cost is around £4,000 plus VAT, including disbursements. It's important to check with other liquidators about any hidden costs, such as statutory advertising and insurance, which might be added later. We include these in our quoted fee to ensure transparency.
How long does the liquidation process take?
The timeline for liquidation can vary, but typically, from the initial meeting to the formal start of the process, it takes about 2 to 3 weeks. While it is a legal process requiring proper notice and thorough understanding of your company’s details, we aim to move swiftly according to your needs. Once in liquidation, the company remains in this state for 6 to 9 months, primarily to handle any unforeseen creditor claims. During this period, you are not actively involved, allowing you to focus on your future endeavours.
How do I know if my company is insolvent?
A sign would be if your company cannot pay its basic operating costs or pays its bills late. Be wary if your company has a poor cashflow or is making ongoing losses, keeping regular management accounts will make this easier to spot.
It is always best to speak to a licensed insolvency practitioner if you are unsure.
What happens if my company goes into insolvency?
You need to seek immediate advice from a Licensed Insolvency Practitioner, like Molly Monks at Parker Walsh. We will be able to provide tailored specific advice for your circumstances. Any advice you receive is free and with no obligations.
What if I can’t afford an insolvency practitioner?
If you can't afford an insolvency practitioner to liquidate your limited company, there are several alternatives you can consider. These include a voluntary strike-off, which is suitable for companies with no outstanding debts, negotiating directly with creditors to reach manageable repayment plans, and seeking free advice from debt charities like Business Debtline and Citizens Advice.
While these options can offer temporary relief, it is essential to understand that the expertise and legal compliance provided by an insolvency practitioner are invaluable. They ensure proper handling of legal requirements, manage creditor relations, protect directors' interests, and maximize asset value, ultimately making their services worth the investment.
If you can contact our offices, we will be able to discuss this and depending on your financial situation, accept a repayment plan to help spread the cost into management instalments. Read More
Are there different types of insolvency procedures?
We're more than happy to help you with any questions you may have. Any advice you receive from us is free and with no obligations, so please get in touch today. The sooner you get in touch, the sooner we can help you.
