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Company Liquidation - an overview

Company Liquidation is the term that describes the process by which a limited company is closed down when insolvent. In the fourth quarter of 2008, 3000 companies went into Creditors voluntary liquidation which was a 62% rise on the same quarter in 2007.

By: Steve Thatcher
Category: Finance:Insolvency
: Business:Insolvency
Posted: Jul 23, 2009
Updated: Jul 23, 2009
Views: 66


Company Liquidation is the term that describes the process by which a limited company is closed down when insolvent. In the fourth quarter of 2008, 3000 companies went into Creditors voluntary liquidation which was a 62% rise on the same quarter in 2007. That only reflects part of the story though because at the same time, 2000 companies went into administration. This is a phenomenal rise as a decade before this was a very rarely used procedure, due to the then complexity and costs. A simplified regime which recognised the need to preserve a business changed all that, and practitioners reacted by changing their fees in line with the new processes. Now a procedure which was cumbersome and costly could be used to preserve assets and jobs for everyone.

The company liquidation procedure has followed suit to an extent in that practitioners now recognise the value pre-packing their sales, and preserving an asset or jobs, prior to the value being eroded by notice of an impending notice of liquidation.

Professionals have the expertise to set up a new company, find the funding and prepare a binding agreement, all with the consent of a proposed liquidator. The deal with then be approved at the meeting of creditors by which time, the new company will be up and running and earning revenue. Prices for a basic liquidation will be far less than you may imagine. In addition an Insolvency Practitioners ability to create finance solutions could help create funds to discharge these fees. In addition payment arrangements can be considered if assets are purchased, such as payments over a number of months.

Basically an insolvency expert would be able and willing to consider all schemes that will enable a business and jobs to be saved whilst delivering the maximum value for creditors. So if you have some difficulties, firstly consider what you want to achieve. Secondly decide if it is some thing that you can do on your own and thirdly give an insolvency expert such as ourselves a call.

Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company. sthatcher@helpwithdebtuk.com
http://www.helpwithdebtuk.com 01162171406

About Author

Steve is a qualified solicitor who specialises in debt solutions for businesses and companies alike. From pre-pack administrations to walk through bankruptcys he is always free to talk to.
Steve blogs at http://steves-debt.blogspot.com

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