So what actually happens once you start Liquidating your company?
Although we do most of the work, it is useful for you to know what will happen to help you feel comfortable with the whole procedure.
Please note this is our Liquidation process, other agents will have other procedures.
Stage 1. Write to creditors – If creditors haven’t been informed, they can actually make our job a lot more difficult, so we like to get the informed as soon as possible. It also means that they will probably stop contacting your directly – coming to us as the first point of call instead, and I’m sure you’ll be a lot happier with that!
Stage 2.Create statement of affairs – assets are valued, creditors validated. A Statement of Affairs is a fancy way of saying a balance sheet and history of the company. It is there to explain what has happened, why you are going into Liquidation (so no-one really thinks that you syphoned all the money off to your holiday island in the pacific). It is an important document, but not as intimidating as most people believe.
Stage 3. Dry run of the Liquidation – this shows up any potential problems before your company is formally liquidated (it’s a lot easier to deal with problems now than later).
Stage 4. Asset values are realised (where possible) – the fixed assets of the company will be sold and it’s debtors called in. Of course this isn’t always possible.
Stage 5. Meeting of Creditors and Shareholders – this is to ratify the Liquidation of the company. The company is now formally in Liquidation.
Stage 6.Deal with employee redundancies – we do this as soon as possible after the meeting of creditors. Even if your company can’t afford to pay them, the Governments Redundancy Payment Office will do.
Stage 7.Deal with any remaining assets – if there are any assets that we not sold prior to Liquidation, these will be sold at auction and the debtors passed to our solicitors to take a view on.
Stage 8.Dividends to creditors – any money generated will be distributed between creditors relative to what they are owed. In a lot of cases this comes to nothing.
Stage 9.Close the company – that’s it. Everything has been done, the accounts finalised and creditors have got what ever money they could get. The company is now formally closed and Companies House will remove it from the register.
The reason we run Liquidations this way, is to minimise the likelihood of any problems for you after the Liquidation.
How can we help
Unlike other Liquidation Companies, our entire service is geared towards helping you as much as possible, without breaking the law .