A winding-up petition has arrived
- Take advice today, ideally well before the hearing.
- !Don't ignore it. That leads almost inevitably to a winding-up order.
Under pressure from creditors? Start with what you are facing.
Pick what is happening and see how soon to act. Then talk it through, free and in confidence, with a licensed insolvency practitioner in Manchester.
Four named, ICAEW-licensed practitioners. When you call, you reach one of them, never a call centre.
Pressure checkA guide, not advice
What are you facing?
Call this weekBefore enforcement starts
HMRC arrears
Unpaid VAT, PAYE or corporation tax keeps building interest and can lead to enforcement. HMRC agrees Time to Pay where the business is viable and the instalments are affordable.
Routes a practitioner may discuss
- Time to Pay
- CVA
- Administration
- CVL
Call todayIdeally before the hearing
A winding-up petition
A creditor has asked the court to close the company. Once the petition is advertised, banks typically freeze the company's accounts, so act the day you receive it.
Routes a practitioner may discuss
- Pay or negotiate
- Administration
- Oppose, if disputed
Call before paydayOptions shrink as the date nears
Can't pay wages
Payroll forces the question: is this a timing problem or a viability problem? Staff are better protected than most directors realise.
Routes a practitioner may discuss
- Short-term funding
- Restructuring
- CVL
Call this weekBest dealt with early
Overdrawn director's loan account
If the company enters liquidation, the liquidator must recover an overdrawn loan account from you personally. Addressed early, it is one of the most manageable issues.
Routes a practitioner may discuss
- Genuine set-offs
- Repayment
- A realistic settlement
Call when readyDebts in your own name
Personal debts
If the debt is yours rather than the company's, an Individual Voluntary Arrangement or bankruptcy may come up. Each affects your home, career and credit differently.
Routes a practitioner may discuss
- IVA
- Bankruptcy
Call when readyThe company is solvent
Closing a solvent company
If the company can pay all its debts, with interest, within 12 months, a Members' Voluntary Liquidation may be the tax-efficient way to close it.
Routes a practitioner may discuss
- MVL
- Strike-off
- Business Asset Disposal Relief
A guide, not advice. A licensed insolvency practitioner will explain what applies to you.
If it is urgent, start here.
What to do today, from our guides. Then call, so a practitioner can look at your own position.
Payroll you can't cover
- Talk to staff early. If you part-pay, pay everyone evenly.
- !Don't use VAT and PAYE money to fund wages.
A Time to Pay instalment you will miss
- Call HMRC before the date, not after.
- !An unexplained default can make the full balance payable.
Worried about your home
- Find any personal guarantees and what they are secured on.
- !Don't transfer the house. Those transfers are routinely unwound.
Wait for a creditor, or act first.
When a company cannot be rescued, how it closes still matters, for you and for the people it owes.
Compulsory liquidation Court-led
- !A creditor owed more than £750 petitions the court, after a statutory demand goes unpaid.
- !Once advertised, banks typically freeze the company's accounts, making trading impossible.
- !The Official Receiver takes over, not a practitioner of your choosing, and investigates directors' conduct.
- !It usually returns less to creditors and is more damaging to directors than a voluntary process.
How a petition runs Step by step
- Statutory demand unpaidThe creditor can then petition.
- Petition issuedAsking the court to close the company.
- HearingUsually a few weeks after the petition is issued.
- Advertised in the GazetteThis often freezes the bank accounts.
- Winding-up orderThe company enters compulsory liquidation.
Creditors' Voluntary Liquidation Director-led
- You start the process, not a court or a creditor.
- A licensed practitioner is nominated, and creditors vote to confirm the appointment.
- It avoids court costs, and shows you acted in creditors' interests once insolvency was clear.
- Staff can claim unpaid wages, notice, holiday and redundancy pay from the Redundancy Payments Service.
A CVL in five steps Step by step
- Initial adviceIs a CVL the right route for the company?
- Board meetingDirectors resolve to wind up and convene meetings.
- Liquidator appointedNominated by directors, confirmed by creditors.
- Assets realisedThe liquidator also reviews directors' conduct.
- Distribution and closureCreditors are paid in order and the company is dissolved.
From our guides on winding-up petitions and Creditors' Voluntary Liquidation. If the business can be rescued, administration or a CVA may come first. A licensed practitioner will explain your options.
What each procedure actually means.
The formal routes side by side, in plain English. Every one is run by a licensed insolvency practitioner or, in a compulsory liquidation, the Official Receiver.
| Procedure | Who it is for | Keeps trading? | Who is in charge | How it usually ends |
|---|---|---|---|---|
| Company Voluntary Arrangement Rescue | An insolvent company that is viable at the operating level | Yes | The directors, with a licensed practitioner as supervisor | Part of the debt repaid over three to five years, if creditors approve it |
| Administration Rescue | A business under creditor pressure that may be saved or sold | Often | An administrator, with a moratorium against creditors | Rescue, a sale, or a move to liquidation or dissolution |
| Pre-pack administration Rescue | A business whose value would not survive a public insolvency | Under the buyer | An administrator, completing a sale agreed in advance | The business is sold on appointment; debts stay with the old company |
| Creditors' Voluntary Liquidation Closure | An insolvent company that cannot be rescued | No | A liquidator nominated by the directors | Assets sold, creditors paid in the legal order, company dissolved |
| Compulsory liquidation Court-led | A company wound up by the court on a creditor's petition | No | The Official Receiver | As a liquidation, with directors' conduct investigated |
| Members' Voluntary Liquidation Solvent | A solvent company that can pay its debts within 12 months | No | A liquidator appointed by the shareholders | Surplus paid to shareholders as capital, company dissolved |
General information from our guides, not advice. For personal debts, see IVA and bankruptcy.
After you call, four steps.
Nothing is signed on the first call. You decide whether to go ahead, with your options and any costs in writing.
- Day one
The call
Free and confidential, with a licensed practitioner, 9am to 6pm.
- Next
Your position
Cash flow, the balance sheet, creditors, guarantees and the loan account.
- Then
Your options
Rescue or closure explained, with a written estimate of any costs.
- Your choice
Your decision
If you go ahead, a licensed practitioner is appointed. There is no obligation.
Before the callHave these to hand, if you can.
Don't have them all? Call anyway. The practitioner will tell you what matters for your situation.
- Latest accounts or management figures
- A list of creditors and what each is owed
- Letters from HMRC and any court papers
- Any personal guarantees
- Your director's loan account balance
- Payroll dates and amounts due
Speak to me directly. Your first conversation is free, confidential, and without obligation.Alan FallowsPartner and Head of Xeinadin Corporate RecoveryICAEW Office Holder No. 9567
Alessandro SidoliArea Managing PartnerICAEW No. 14270
Jessica BarkerLicensed Insolvency PractitionerICAEW No. 32050
Allan CadmanDirectorICAEW No. 9522
Four licensed practitioners. One phone number.
Our ICAEW-licensed team is based at 100 Barbirolli Square in Manchester and handles CVLs, administrations and MVLs across Greater Manchester.
- Licensed and regulated by the ICAEW, a Recognised Professional Body approved by the Insolvency Service.
- Check any licence on the Insolvency Service's free public register.
- Honest advice, including when a business can't be saved and how to close it responsibly.
- Clear written fees before you commit. No headline fee with extras added later.
Questions directors ask first.
Is the first conversation really free?
Yes. It is free, confidential and without obligation, and it is with a licensed insolvency practitioner. If you go ahead, you get a clear written estimate of any costs first.
Can I lose my house if my company goes into liquidation?
For most directors, no: the company's debts belong to the company. The exceptions are specific, such as a personal guarantee secured on the property or a large overdrawn director's loan account.
Read the guideCan I be a director again after liquidation?
Yes. A liquidation does not, by itself, stop you being a director of another company. The main restriction is on using the same or a similar name for five years, unless an exception applies.
Read the guideWhat happens to my staff?
If the company enters a Creditors' Voluntary Liquidation, employees can claim unpaid wages, notice, holiday and redundancy pay from the government's Redundancy Payments Service.
Read the guideWhat does it cost to liquidate a company?
It depends on the type of liquidation and the company's affairs. Where the company has assets, the liquidator's fees are usually paid from them. You get a written breakdown before you commit.
Read the guideHow do I know an adviser is properly licensed?
Ask whether you are speaking to a named, licensed insolvency practitioner, then check them on the Insolvency Service's public register. Be wary of anyone who promises an outcome or pushes you to sign quickly.
Read the guideNot sure where to start? Start with a call.
Free, confidential and with a licensed practitioner. 9am to 6pm, Monday to Friday.