What To Do If You’re Worried About Company Liquidation Cost

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If you need to liquidate your company, then it’s natural to feel concerned about how much this will cost. If you’re liquidating an insolvent business, where financial strain is already a real issue, then you’re likely to be particularly concerned about the company liquidation cost. At My Liquidation, we recognise the concern that comes with paying for the cost of  liquidation, particularly for companies that are struggling financially. This is why we do not operate a strict upfront payment structure. In order to help ease some of your main concerns, let’s take a closer look at how the company liquidation cost is funded, and how our experienced team of insolvency practitioners can help. 

How Much Does It Cost To Liquidate A Company?

The cost of liquidating a company will depend on the size and structure of the business, the amount of work involved and the type of liquidation process. A typical liquidation can cost anything between £1,000 to £7,500, depending on the individual circumstances. Different insolvency practitioners will also charge varying fees. You can get an instant quote from My Liquidation online, whether you’re looking to liquidate your insolvent business or to liquidate your solvent business.

The two main types of liquidation are as follows:

Members Voluntary Liquidation (MVL): This is the process for companies that are solvent, and is a tax efficient way to extract assets and wind up the affairs of a company that has come to the end of its useful life.

Creditors Voluntary Liquidation (CVL): This process is appropriate for insolvent companies that need to close their company as they are unable to pay their debts as and when they fall due.

How Is The Company Liquidation Cost Funded?

The company liquidation cost is typically funded in one of two ways, either from the assets owned by the company, or via a contribution from directors. If the business has assets, our team will work with you to dispose of the assets for the best possible price in order to fund the process. However, if there are no assets available, and if directors cannot pay the outstanding costs from their personal funds, there are options available. 

How To Fund The Company Liquidation Cost Without Assets

If a company is insolvent and does not have the necessary assets to pay for the company liquidation cost, our team will work with you to agree a payment plan. As we mentioned earlier, we do not operate a strict upfront payment structure, but rather work with you to arrange a realistic payment plan. There may be financial help available, such as claiming director redundancy entitlements which can be put towards the costs of the process. We’ll help you look at all the options available in order to help you close your business in the most economical way. 

To hear more about the cost of liquidating your company, or for more details on the  process, please don’t hesitate to get in touch with us. 

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