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"Finance7 provided an invaluable service at a very difficult time. They presented the options in a clear and thorough manner and ensured the best outcome possible. I can highly recommend them"

Director of Merricks Media Ltd

A Compulsory liquidation is a legal process by which a liquidator is appointed by order of the court to 'wind up' the affairs of a limited company. At the end of the process the company ceases to exist. Winding up does not mean that the creditors of the company will necessarily get paid. The purpose of winding up a company is to ensure that all the company's affairs have been dealt with properly.

This involves:-

• Ensuring all company contracts (including employee contracts) are completed, transferred or otherwise brought to an end
• Ceasing the company's business
• Settling any legal disputes
• Selling any assets
• Collecting in money owed to the company
• Distributing any funds to creditors and returning share capital to the shareholders (any surplus after repayment of all debts and share capital can be distributed to shareholders)

A creditor or a director may apply to wind up the company. Usually it is a creditor that applies to wind up the company, however Finance7 is using this procedure in an increasingly regular basis on instruction of the Director. The main advantage being that the costs of Compulsory liquidation are less than those of Creditors Voluntary Liquidation. This is relevant when the assets of the Company are less than would be required to pay a Liquidators fee in a Creditors Voluntary Liquidation. In such cases the Liquidator would ask the Director to personally fund any shortfall.

Finance7 will handle the whole process of a Compulsory liquidation for just £2,500 plus VAT, in contrast a Creditors Voluntary Liquidation will usually cost at least £4,000 plus VAT