Understand your company's position and learn more about the options available
Published:
Can a liquidator recover assets for the benefit of creditors?
If a company is facing insolvency, it is the duty of the directors to enlist the help of an insolvency practitioner at the earliest possible opportunity. The insolvency practitioner will assess the situation and advise whether the business can be saved, or whether steps should be taken to bring the company to an end. Should it be decided that the company is beyond rescue, the insolvency practitioner will take control of the company and place it into liquidation.
Free 60 Second Test
For Ltd Company Directors
What are you looking to do?
Choose below:
What happens to company assets in liquidation?
One of the main parts of a liquidation process is for the insolvent company's assets to be identified and located by the appointed insolvency practitioner. This is because a liquidation procedure is designed to allow creditors to recover as much of the money they are owed by the insolvent company as possible.
Company assets are sold during the liquidation in order to realise as much money as possible for the benefit of the company’s outstanding creditors.
In the case of insolvent company liquidation, there will simply not be enough money raised in order to pay every creditor in full unfortunately, however, the appointed insolvency practitioner will look to repay creditors as far as possible according to a set hierarchy as set out in the Insolvency Act 1986.
“I completed the simple on line form, received the free guide by email immediately and then a call from Tom who was so very helpful. Highly recommend this service”
Pauline Whitehead
How does a liquidator maximise asset values during liquidation?
It is a liquidator’s primary duty to realise as much money as possible for the creditors. A liquidator acts in the best interests of the creditors so it is always their main objective to be able to distribute the maximum to each one. This means as much money as possible must be extracted from the company and its assets.
All company assets will first be identified and located by the insolvency practitioner. Assets will then be independently valued to ascertain their market value. A suitable sales process will then commence which may involve selling these assets via an auction or directly to a connected or unconnected party of the insolvent company such as a competitor.
Mounting creditor pressure?
If your creditors are growing increasingly impatient, it is time to take action. Ignoring the situation is only likely to make it worse. Take the first step today by contacting Real Business Rescue for immediate help and advice.
The team are available now - 0800 644 6080
Get a Quote Find Your Nearest Office
Identifying concealed assets and antecedent transactions
As part of company liquidation, insolvency practitioners are obligated to investigate the conduct of the directors in the months and years leading up to the company’s demise. In the vast majority of cases, a company becomes insolvent despite the best intentions of its directors. If the liquidator is satisfied that no malicious behaviour has occurred then the liquidation will be allowed to go ahead with no further action taken against the directors.
However, the appointed insolvency practitioner will be on the lookout for any instances of wrongful trading, misfeasance, or fraud.
If a preference payment or transaction at undervalue has been made, the insolvency practitioner can ask the court to reverse these transactions and have the money returned to the company so that it can be fairly distributed amongst all outstanding creditors.
Need to speak to someone?
If your company is struggling with unmanageable debts, squeezed cash flow, or an uncertain future, you are far from alone. We speak to company directors just like you every single day, and we are here to give you the help and advice you need.
Call our team today on 0800 644 6080
How Real Business Rescue can help
If your company is insolvent, or you are concerned that it is heading that way, contact the experts at Real Business Rescue. Our dedicated team of licensed insolvency practitioners can help you understand your current situation and advise on the next best step for you to take. Real Business Rescue provide director advice online, over the phone, or in-person at one of our nationwide UK offices or a place of your convenience. You are never far away from expert advice you can trust. Call us today.
Real Business Rescue are here to help
Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.
- UK’s Largest Liquidators
- 100+ Offices Nationwide
- 100% Confidential Advice
- Supported 25,000+ Directors
Looking for immediate support?
Complete the below to get in touch
Free 60 Second Test
For Ltd Company Directors
What are you looking to do?
Choose below:
We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.
Find your nearest office - we have more than 100 across the UK. Remote Video Meetings are also available.
Free, confidential, and trusted advice for company directors across the UK.