Whether you have decided to liquidate your company for financial reasons, you are being forced into liquidation by your creditors or you find yourself in a personal financial situation, where you have no choice but to make yourself insolvent, you will need the assistance of the insolvency practitioners Manchester.
Insolvency practitioners manchester are often qualified accountants who are licensed and authorized to provide an insolvency service to private individuals and companies throughout the country.
These persons act on behalf of the insolvent company or individuals, handing their affairs and helping them complete the daunting and stressful insolvency process whatever it may be.
In order to be a licensed and approved insolvency practitioner, the person must have passed their Joint Insolvency Examination (JIEB), as the entire process is monitored extensively to ensure all rules and regulations are met. The JIEB insolvency education process takes place in step form, each step must be completed to ensure the rules and required educational standards are complied with before the next step is taken.
Once qualified the first job for any insolvency practitioners manchester once appointed in liquidation is to work alongside the director, taking over control of the company, its finances, and assets. The first step of any insolvent liquidation process is to sell all the assets as quickly as possible. Though bear in mind that liquidating a company can take the liquidator many months or even a year or more be depending on the complexity and size.
With the assets sold, the insolvency practitioner acting as liquidator is then responsible for collecting all the money. From the minute the liquidation process starts, the company director gives complete control to the liquidator. It is their decision whether to close the doors or continue trading, this, of course, affects employees.
When it comes to liquidation, the main priority is to customers, creditors and employees. With all the money collected, the liquidator has to go through each of the creditors’ claims, identifying if they are in fact true. This is a very detailed process, which involves going through all the accounts to verify each claim before any payments are made.
If the liquidator chose to close the doors, they will also have a number of employee claims, which may include unpaid wages and holiday pay. Employees will be paid before unsecured debts. With any liquidation, all secured debts are paid first and then employees and unsecured debts are paid out.
From here the liquidator distributes all the relevant funds according to the insolvency rules and regulations and then they close the company. Once the debts are paid, where possible and paying due care to all the creditors, the company is removed from the Register and will cease trading forgood.
As a company director, finding yourself in this situation can be exceptionally stressful and daunting. If you are a limited company, then the shareholders have to agree to the liquidation and they can appoint the insolvency practitioners manchester of their choice. In the vent of the compulsory liquidation, the creditors do have the ability to choose the liquidator of their choice. In both instances, the liquidator will follow the same process and ensure all the steps are carried out as per the required rules and regulations.
As a company director, it’s important to bear in mind that a liquidator focuses on the creditors and not on you, you may want to try and secure a company that will try and helps you protect yourself during this process.