Compulsory liquidation
Recover company debts
If you are owed money by a company and are experiencing difficulty recovering it, you can force the business to be accountable through compulsory liquidation. You can issue a winding up petition to the court for the Official Receiver to take control of the business that owes you, liquidate the company assets and recover the debt.
The cost to issue the petition varies but the whole process can run into several thousand pounds. So it’s only worth taking this course of action if the debt is substantial enough and you also feel that the debtor has the assets available to pay the debt. Often the statutory demand for payment that is sent prior to the issue of the winding up petition is enough to extract settlement from a solvent but slow paying company.
Our role in compulsory liquidation
As well as offering you our professional advice on whether compulsory liquidation is an option for you to recover your debt, our main role following the successful serving of a winding up petition is to act as liquidator in place of the Official Receiver.
Once a winding up petition has been successfully served you can agree with any other creditors to appoint us as liquidator. It then becomes our job to investigate the actions of the officers and directors of the company being wound up, establish what assets they have and liquidate them to enable your debt to be repaid.
Expert insolvency guidance
“Liquidators have wide-reaching powers to assist them in fulfilling their role. For example, they can bring legal proceedings in the name of the company, carry on the business of the company and pay debts. Consequently, the professionalism and knowledge brought to the proceedings by an insolvency practitioner ultimately determines how much money creditors recoup.”
Edward Gee, Partner – CG&CO
For independent and expert guidance on a compulsory liquidation, call CG&Co today on
0161 358 0210. Alternatively, click here.
