Frequently Asked Questions
What is Compulsory Liquidation?
A Compulsory Liquidation is a procedure under the Insolvency Act to close an insolvent company.
The insolvency of a company is usually shown by the inability of a company to pay those who are owed money by the time they are due for payment.
Compulsory Liquidation, sometimes known as Winding up a company is normally led by a creditor who is pursuing the company for money.
The first formal step to a Compulsory Liquidation is a petition to wind up the company this application is presented by the dissatisfied creditor.
Even after the Compulsory Liquidation process has begun there may still be time to follow the procedure of Creditors Voluntary Liquidation. This is initiated by the directors of the company rather than by its creditors.
We do not see it as our place to tell you what to do, but to explain your options and how everything works and let you decide what is best for your business.
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