Liquidating a ltd
From this point, the Court makes a decision after which everything is in the hands of the liquidator.
Many companies and creditors ask the obvious question, how long does it take to liquidate and dissolve the company?
However, liquidation should always be the last resort.
However, the laws that govern the process are quite precise and must be carried out exactly as set forth in the Insolvency Act of 1986.Whilst there are two main types of liquidation, voluntary liquidation does not involve the court whereas compulsory liquidation a court process where a petition to wind up the company is presented.A synopsis of each is as follows: Compulsory Liquidation – In this case, creditors petition the Court to liquidate the company because they believe it to be insolvent and incapable of paying its debts.One of the biggest creditors to petition the Court is HMRC when taxes are owed and government believes the company to be irreparably insolvent.Members Voluntary Liquidation – When a company is solvent and able to pay outstanding debt, a Members Voluntary Liquidation (MVL) can be commenced. is a procedure initiated by the directors - rather than the creditors as it may sound - because a company is insolvent and unable to its debts.