Compulsory liquidation occurs when a court orders a company to cease operations, typically as a last resort for creditors to recover unpaid debts. Even if your company settles the initial debt, other creditors can step in to continue the legal action. However, with timely intervention and a well-structured plan, there may still be options to save your business.

How Does the Process Work?

1. Winding Up Petition

The process begins when a creditor files a petition in court to liquidate your company. This is a serious step that can lead to the sale of assets to repay outstanding debts.

2. Impact of the Winding-Up Order

Once the court issues a winding-up order, the Official Receiver takes control of the company. At this stage, any payments made to creditors, including directors, could be reclaimed to settle the debts.

How YLA Can Help You

Free Initial Assessment

We offer a free consultation to assess your company’s situation and provide expert advice on your best course of action.

Court Applications

Our team can help communicate with the courts, working closely with trusted legal professionals to explore possibilities such as requesting extensions or challenging the winding-up petition.

Payment Arrangements

If there’s potential to turn your business around, we can assist in creating a repayment plan that satisfies creditors and gives your company a chance to recover.

Liaising with the Official Receiver

If liquidation is unavoidable, we’ll guide you through the process, ensuring that assets are handled efficiently and that the liquidation proceeds as smoothly as possible.

Why Choose YLA?

At YLA, we understand the pressures of running a business in financial distress. Our experienced team will provide personalised, clear advice to help you navigate the challenges of compulsory liquidation, offering support every step of the way. Whether it’s finding a way to keep your business running or managing an orderly liquidation, we’re here to help.

Contact us today for a confidential discussion about your options.