Liquidation Advice

Discussion in 'Insolvency' started by Kermitthefroggie22, May 27, 2020.

  1. Kermitthefroggie22

    Kermitthefroggie22 UKBF Newcomer Free Member

    1 0
    My business is insolvent, it cannot go on and I need to file for liquidation, the business has no money, owes me money. I have spoken to most of my suppliers and they are 'fine' about it, in a sense of once we go into liquidation, the insurance will cover the amount.
    There are 3 companies I have not told of my intentions as yet, Barclays, Paypal and Ebay.
    I have been onto the GOV advice and it shows to pay £1600 etc and file the paperwork and attend court etc on the apply direct to court, I have tried to post details but it has been moderated


    I think would be ok doing this myself, but would anyone get legal advice or is it not worth it?
    my accountants cannot help me go into liquidation but can help with any paperwork, do I need advice or shall I employ a liquidator?
    I am alittle confused with how I can apply to the court myself but then there are companies advising to contact them and it costs £5,000 plus... and why does it then cost so much? Am I missing something on the Gov site?

    I thought I had it all clear in my head , but as the weeks has gone on, and the stress of it all is confusing me and I don't want to make any mistakes
    I will have to pay any fees or legal action out of my own money
    Thank you
     
    Posted: May 27, 2020 By: Kermitthefroggie22 Member since: May 4, 2020
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    16,188 3,420
    I presume you are referring to this.

    https://www.gov.uk/liquidate-your-company/apply-to-court

    The procedure you refer to means a government official call the Official Receiver will be put in charge of liquidating the company. The companies charging £5,000 plus are private businesses and there fees have to cover a profit for the owner.

    I can't advise on which is best but there are people here who are experts. Check back in to see more comments as you may not get informed about them.
     
    Posted: May 27, 2020 By: Scalloway Member since: Jun 6, 2010
    #2
  3. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    668 136
    Hi

    As mentioned above I am assuming you have gone down the compulsory liquidation route.

    If so this will be dealt with by the official receiver which is a government department and therefore government funded.

    An independent liquidator has to call meetings of shareholders and creditors and also has to deal with money laundering check, ethics check, GDPR, bribery act (I could go on) all of which the official receiver isn't required to do.

    We are also required to produce reports which because of the rules and regulators are in much more depth than those generated by the Official Receiver.

    On the flip side, an independent IP will help provide you with advice and guidance through the process.

    I hope this helps give you a better understanding of the process.

    Regards

    Gavin
     
    Posted: May 27, 2020 By: Gavin Bates Member since: May 9, 2016
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    22,989 2,772
    Posted: May 27, 2020 By: Mr D Member since: Feb 12, 2017
    #4
  5. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,523 448
    It might be better to simply dissolve it instead of liquidating.
     
    Posted: May 28, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #5