Choosing a Liquidator
Having the right Liquidator to work with can make all the difference to how well your Liquidation will go.
The right Liquidator means you will:
- Be better prepared for your Liquidation
- Have an easier relationship with them.
- Less hassle during your Liquidation
By the time you have realised you have picked the wrong Liquidator it is just too late.
There are 1,735 qualified Insolvency Practitioners in the UK today, so you would think that it would be easy to find the right Liquidator for you. But this is not always the case.
Many of the Insolvency Practitioners in the UK work with large firms (Price Waterhouse Coopers, KMPG and the like). Still more don’t handle Liquidations (or don’t on a regular basis so have little empathy for what is actually happening out there),
As with all industries, there are some that take there role a little too seriously and end up in an adverse relationship with most Directors.
Insolvency agents offer a solution to this predicament, you can get an idea of how the Liquidation will be run before the company is actually Liquidated (if the agent offers that sort of service). If you do use an agent, make sure of how much involvement they will have prior to the case being passed to a Liquidator. Some agents will pass your details straight over, others offer value added services (like us) that will make your journey through Liquidation so much easier.
Before you choose your Liquidator (or Insolvency agent for that matter) there’s a few key points to bear in mind:
- What sort of Insolvency do they handle on a day to day basis. Some are exclusively corporate (like us) and don’t get involved in personal debt what so ever. Most take on any work thrown at them. Some just handle personal insolvency cases and very little in the way of Liquidations. Ask the Liquidator you’re thinking of using what sort of cases they handle (if they say a mixed bag or something similar be a little more careful as they are being vague which is never a good sign).
- What sort of advice are they willing to offer PRIOR to Liquidation. For most they will not give out any advice, leaving you to deal with any issues that come along. This is where you may start falling foul of the law and end up with problems during the Liquidation. Liquidators are notoriously vague about the advice they give before Liquidating a company as they are worried about being sued later for improper advice, so they don’t give any.
- What is their process for dealing with a company before Liquidation. The post Liquidation process is pretty standard, but the pre-Liquidation isn’t. There are many problems that can be dealt with amicably before Liquidating a company, reducing your problems once the company is formally in Liquidation.
- How comfortable do you feel speaking to them. This is often over-looked when thinking about which Liquidator, however, it is very important. There will be times when you will need advice, the last thing you need at that stage is a Liquidator who just can’t speak to.
Hopefully this concise guide will help you make the best decision for you. Please remember that it is your choice who to use, not your accountants or your solicitors, if they do suggest a Liquidator, fine, but make sure of their reasons for doing so (i.e. have they ever received any money from the Liquidator) while Liquidators are not allowed to pay commission, there are many ways around this.