![]() ![]() The directors may also want to sell the company, start a new venture or simply retire. Profits may be down, sales stagnating or creditors may be hounding the accountants to be paid. The end result of the liquidation process is the sale of a company’s assets in order to pay its creditors, a process that ultimately leads to the company being closed down and struck from the Companies House register.īut what’s the first step in the liquidation process? And how does a business reach the point where liquidation is the best option for it?Īny liquidation process usually begins with the company directors recognising that the business is in financial difficulty, or expressing a desire to close the company down. What Is the First Step in the Liquidation Process? Ultimately, the more cooperation there is between all parties involved, the smoother and quicker the liquidation process will be. A compulsory liquidation is necessarily going to last much longer than a voluntary liquidation, as opposition is going to be met. A difficult liquidation process that involves a large company and multiple creditors could take 6 to 12 months to complete. If it proves difficult to sell assets or if legal opposition is met, then it can take much longer than this. If a small company elects to undertake an MVL for example, this voluntary process could be completed in as little as a week if the right buyers are found quickly. It depends on the type of liquidation occurring and the size of the company being liquidated. The length of time the liquidation process takes can vary from one company to the next. How long does it take to liquidate a company? Keep reading, as our insolvency specialists provide a step-by-step guide to the liquidation process. If you’re considering liquidating your company as a response to insolvency, Irwin Insolvency has the expert advice you need to initiate the liquidation process. The liquidation process can be voluntary or it can be court-ordered, with the end game in either case being to ‘liquidate’ the company. Liquidation commonly occurs when a company can no longer pay its debts, resulting in company assets being sold off in order to pay creditors. The liquidation process sees a company wound up, closed down and struck from the Companies House register. ![]()
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