Compulsory Liquidation
Either a creditor is threatening to put your company into Compulsory Liquidation or you’re considering using Compulsory Liquidation as a method to liquidate your insolvent company.
Being threatened with Compulsory Liquidation
HMRC are probably the biggest culprit for threatening and indeed forcing companies into Compulsory Liquidation. Though, HMRC are not alone in taking such action.
All may not be lost. Alternatives may provide you with a better outcome than you were expecting.
Let us explain your options to you and you may just be pleasantly surprised.
Thinking about putting your company into Compulsory Liquidation
If you don’t see the benefits of Creditors’ Voluntary Liquidation and aren’t phased by the downsides of Compulsory Liquidation then you may choose to let us assist you in placing your company into Compulsory Liquidation.
For a Compulsory Liquidation we wouldn’t be the Liquidators but we can guide you through the process and help you make the appropriate applications to Court.
This service starts from just £2,250 including Court fees.
What is Compulsory Liquidation?
A Compulsory Liquidation is sometimes referred to as a company winding up.
A Compulsory Liquidation is a process for the closure of an insolvent company. The clue is in the name compulsory.
It is the option that is open to disgruntled creditors that have run out of patience with excuses to force a company into liquidation.
This sits in comparison to a Creditors’ Voluntary Liquidation, where the clue is again in the name. In a Creditors’ Voluntary Liquidation CVL the Directors lead the company into Liquidation.
One of the key points where a Compulsory Liquidation differs to a Creditors’ Voluntary Liquidation CVL is timing. A CVL can start today whereas waiting for a creditor to place your company into liquidation will take as long as it takes for a creditor to become annoyed enough to Wind-Up your company.
One other key benefit of Creditors’ Voluntary Liquidation is the relative ease with which a business can re-start following on from liquidation.
