Cost of liquidating a company
If you can't afford a liquidation of your company because of the lack of money available to pay liquidators costs and fees then consider this cheaper and affordable low cost alternative to liquidation. A cheap price and a reasonable fixed fee cost charge instead of an unknown level of liquidation fees.
We call it the "I can't afford a liquidation" process and that service can be delivered to your company's creditors by Purnells Licenced Insolvency Practitioners & Chartered Accountants. The process is based on making the benefits of using Sections 1003 to 1008 of the Companies Act 2006 (formerly Section 652 of The Companies Act 1985) available to your limited company.
This process is used to have a company struck from the Companies House Register and dissolved. The procedure also has the benefit of not being a formal insolvency procedure.
The "I can't afford a liquidation" process can be used if your company is insolvent and has minimal assets.
The cost benefit to you and your company (A lower and certain fixed price for this alternative to liquidation)
The minimum price for a creditors voluntary liquidation is often quoted by others as being from £2,500 plus VAT when what they might really mean is that that quoted cost figure is merely the sign on fee - and more charges are payable later out of asset realisatons in the follow on liquidation. By contrast Purnells will, in most instances if a liquidation is needed, charge no upfront fee thus making it a free liquidation as far as your personal pocket is concerned.
There are three alternative ways in which you could progress the "I can't afford a liquidation" process:
- Firstly the process would only cost £10 if you do all the work yourself.
- Secondly and alternatively for a small fee we can send you a work plan, a work check list, standard letters and forms and a copy of the relevant Sections of the Companies Act 2006. (Sections 1003 to 1008) to enable you to progress the procedure yourself in its entirety with the comfort of knowing that you are guided by LIcenced Insolvency Practitioners and that all the legal requirements are satisfied.
- Thirdly you could hand over the entire process to us for a fixed negotiable fee. That one time fixed fee is 25% or more less than the lowest liquidators fee that you can find advertised on the internet - Guaranteed.
The "I can't afford a liquidation" process - If I take the third option and instruct Purnells Licenced Insolvency Practitioners what do they actually do for me and my company? - How is creditor pressure relieved?
- We meet with you in person or by way of an hour or two's long telephone conversation. During that discussion we complete an enquiry pack so as to fully understand your company's financial position. We also examine the situation as to any personal guarantees given by you to company creditors - We also give advice on that key matter.
- At the meeting we address your concerns and questions. We don't jump to conclusions - instead we examine all the available options and discuss the pros and cons of each option with you. Once we have both confirmed that the "I can't afford a liquidation" process is right for your company we then send you an e-mail requesting a "shopping list" of information. That is information that is needed to move to the second stage of the process.
- Once that requested information is received back from you we then prepare a full pack of information for creditors. The pack includes:
- We then write to all the creditors and explain the financial position to them. We explain that if they issue a winding up petition against the company then they would incur abortive and irrecoverable costs of an estimated £2,000 on top of the amount they have already lost.
However we positively invite the creditors to petition for winding up of your company and even say that "we would be grateful if they would petition" - But in 95% of cases the creditors do not wish to throw good money after bad - particularly after they have had the financial position fully explained to them.
- To satisfy the requirements of Section 1006 of the Companies Act 2006 we also send the pack to all shareholders, directors, employees and to trustees of any pension fund.
- We write to the Registrar of Companies with the appropriate form and also copy to the registrar the letter and pack of information that was sent to all creditors.
- We ensure that you have satisfied your duties as a director in connection with every paragraph of the many relevant pages of Companies Act requirements.
Further benefits for you
- With a redirection of post then put in place all company post is delivered to one of Purnells offices. That results in Purnells taking over all the written pressure from your company's creditors, their solicitors, bailiffs, HMRC, Inland Revenue, VAT, PAYE and employees. In other words Purnells take the heat and you are relieved of stress and worry. You can get on with your life and concentrate on the positive aspects of any new business that you might have started or intend to start. (We also advise on phoenix or restart companies and prepacks if that is advice you need.)
- The registered office of you company is also changed at Companies House to Purnells address. In consequence you do not get bothered by any any legal or Companies House documents that are later served on the company. Instead those documents are sent directly to Purnells and we reply to them on the same day.
- We review your company file each month after sending out the information pack to the creditors and then update you by email. Our monthly update to you tells you the then forecast time given by Companies House as to when they expect that your company will be struck off and dissolved.
- Normally after three to eight months of sending out the creditors pack the company is struck from the register at Companies House and then ceases to exist.
- In the interim period you have not had to face a creditors meeting and we have taken any postal and telephone pressure off you in the limbo period leading up to strike off.
- You have addressed your statutory duty (through us) of informing your creditors of the financial position and as you have also reported the matter to the Registrar of Companies you can then not later be personally fined by the Registrar for any later failure to deliver accounts and annual returns.
- As the process is not a formal liquidation no "conduct report" on the directors is sent to the Directors Disqualification Unit and no investigation is undertaken into the company affairs.
- If you instruct Purnells then we can be paid by a personal credit card, personal cheque or out of the realisation of any assets (by definition of small value) of your company. Alternsatively for £10 you can do all the work yourself. In any event we work on a fixed fee basis so that you know where you are.
- Fill in the attached form if you want to find out the FIVE SECRETS of paying no liquidators fees.
If you can't afford a liquidation of your company and want a cheaper more affordable alternative with the option of paying either no costs or little fixed cost then the cheap and effective way may be for you to consider five liquidation and insolvency secrets and learn how to obtain the cheapest liquidation price at the lowest cost.