Creditor Voluntary Liquidation

At Francis Wilks & Jones our team of expert liquidation lawyers have worked with all types of business and all types of liquidation situations throughout our many years of combined experience in this area.

Our expertise can help

If we have learnt one thing, it is that the earlier a client comes to us, the more that we can do for them to prevent a situation that may be irrecoverable for the company.

Unfortunately, in these difficult times many companies are facing financial issues. If your company is having financial problems, be it cashflow problems, underfunding, a problem with sales, or any other issue, and you think that realistically you will struggle to pay creditors on an ongoing basis, then you may need to consider creditors voluntary liquidation as an option.

Our experience over the last two decades

The team at Francis Wilks & Jones has significant experience of dealing with companies in all types of situations. We can talk through the options with you to help you decide if it is necessary for your company to go into a liquidation process, or whether they may be other options for the company in terms of business turnaround tools.

If you have reached the conclusion that there really is no longer a viable business to save, and to continue trading will be to the detriment of your creditors, then whilst this is never an easy decision, sometimes making that decision is the first step to freeing you from the stress that you have inevitably been under, and allowing you to move forward.

What is clear is that the sooner you come to us, the more options that you will have.

Our team will advise on the best way to start the voluntary liquidation process, if it is appropriate for your business, and can guide you through the legal process involved in creditors voluntary liquidation. We work with the best insolvency liquidators in the country, to ensure that your company is wound up quickly and effectively.

At the same time, we can advise you on your own duties as directors and business owners, helping you to protect your own position too, so that you can be free to pursue fresh directorships in the future.

The first step is to speak to one of our expert advisers. Contact the team today so we can discuss your options with you in confidence.

Whatever your situation – we can help

We have also set out below our answers to the common questions we get asked on this subject.  But do feel free to call one of our friendly team of advisers for a confidential call on any of these issues and we will happily talk to you about your options.

 


Common questions answered

1. What is voluntary liquidation?

There is often some confusion around voluntary liquidation and what it actually means. There are in fact two types of voluntary liquidation, a Members Voluntary Liquidation and a Creditors Voluntary Liquidation. At Francis Wilks & Jones our team of liquidation experts act and advise on both types of liquidation on a daily basis, and are well placed to answer any queries you may have on either process.

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2. What is Creditors Voluntary Liquidation?

We are regularly approached by directors or shareholders or creditors who are confused about the term Creditors Voluntary Liquidation. At Francis Wilks & Jones we act for creditors, shareholders or directors in a Creditors Voluntary Liquidation on a daily basis, and explain the process in more detail below.

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3. What are directors’ responsibilities during voluntary liquidation?

At Francis Wilks & Jones we regularly act for directors who ask us what are directors’ responsibilities during voluntary liquidation? During the lifetime of a company a director’s responsibilities may change from being only to the company, to being responsible to creditors once a company faces insolvency issues. The cross over point can be confusing and it is essential in order to avoid potential personal liability that directors are fully aware of their responsibilities both before and during voluntary liquidation.

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4. What is the difference between voluntary and compulsory liquidation?

The terms compulsory liquidation and voluntary liquidation can be confusing, and it is easy to see why. We aim to set out below the main differences between compulsory and voluntary liquidation to provide some clarity on the subject.

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5. How long does voluntary liquidation take?

Concerned business owners considering whether to liquidate my company will need to decide whether the liquidation of a company is the right process for them. However, how long does voluntary liquidation take is often a key factor in these considerations. We set out below some information on how long this might take, although the length of time a liquidation takes very much depends on the circumstances of the company or companies in liquidation.

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6. Creditors Voluntary Liquidation

We are sometimes asked by our clients what does Creditors Voluntary Liquidation mean. At Francis Wilks & Jones we are often instructed to act on Creditors Voluntary Liquidation, both in advising and starting the process, and acting during the liquidation process. We set out more detail for you below:-

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7. How do I put my company into creditors voluntary liquidation?

A business owner who reaches the inevitable conclusion that their company is facing such insolvency problems that they are unlikely to recover from will often reach out to our team of liquidation experts at Francis Wilks & Jones to advise on the correct process. We will review with them whether it is the right time to place their company into creditors voluntary liquidation, or if other options may be better for their company situation. If creditors voluntary liquidation is the best option, our team works with the best liquidators in the country to ensure the process runs as smoothly as possible. We set out below more detail on what is involved with creditors voluntary liquidation of an insolvent company.

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8. What happens to the company in a creditors voluntary liquidation?

A responsible business owner may have reached the conclusion that their company should go into creditors voluntary liquidation, but they are often confused about what this actually means for them and their company. Our team of liquidation experts at Francis Wilks & Jones have many years’ experience in this area, and can talk you through the process and consequences in more detail. Contact us today to discuss your particular situation further. Below we provide some further information on what happens generally to a company in a creditors’ voluntary liquidation.

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9. Does a creditors voluntary liquidation put an automatic stop to existing claims against the company?

We are often asked at Francis Wilks & Jones, what happens to claims against a company if it has gone into voluntary liquidation? Are they automatically stayed? We set out below some of the key points to note.

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10. What happens to a company after a creditors’ voluntary liquidation?

We are often asked by company owners, what happens to a company after a creditors voluntary liquidation has taken place? We set out below the standard process for any company that has either been in compulsory liquidation or creditors voluntary liquidation.

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