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"I cannot imagine going through this process without the assistance of Finance7. Their expertise is second to none in this field and they are always willing to assist with any problems both pre and post insolvency. I cannot recommend them highly enough"

Ralph Maxwell, Director of Parabola Retail Ltd

There are three different types of liquidation that a company can enter. If the Company is insolvent on a cash flow basis or on a balance sheet basis then Creditors Voluntary Liquidation or Compulsory Liquidation will be appropriate. Should the Company be solvent but require winding down in a controlled manner then Members Voluntary Liquidation is likely to be appropriate.

Creditors Voluntary Liquidation is the most common form of liquidation in the UK despite being a last resort for a company that is struggling and cannot continue to trade. The decision to enter a Creditors Voluntary Liquidation is taken by the directors and shareholders of the company. The case would be administered by a commercial Insolvency Practitioner.

A Compulsory Liquidation comes when a creditor or Director issues a winding up petition to the court and if accepted, the company is then forced into liquidation. The case would be administered by the Official Receiver.

Finally, a Members Voluntary Liquidation only occurs when a company that can comfortably pay off its creditors and the directors decide to wind the company up for their own reasons (perhaps due to retirement). Once the company enter a Members Voluntary Liquidation the assets are sold off and the liquidators fees are covered as well as all creditors being paid in full