A guide, not advice. This explains how things generally work. A licensed insolvency practitioner will tell you what applies to your company or to you.
What questions are asked in a liquidation investigation?
Every insolvent liquidation includes a review of the directors' conduct - and knowing the questions in advance takes most of the fear out of them, because for honest directors they're answerable from the records in one meeting.
The core questions
When did you realise the company was in difficulty, and what did you do? (The wrongful trading timeline.)
What happened to the assets - anything sold, transferred, or moved in the final year, to whom, and at what value?
Were any creditors paid ahead of others - especially connected or guaranteed ones?
What's the loan account position, and how did it arise?
How were the Bounce Back Loan and any Covid support obtained and used?
And are the books and records complete and delivered?
What the review runs on
Bank statements, accounts, the statement of affairs, and your answers - which is why preparation and first-meeting candour shorten everything.
How it usually ends
For the majority: no further action, a routine report, and the process concluding around you - the outcomes described across our director guides apply, and the best preparation began months earlier with early advice.
0333 023 5090 - if any of the questions above has an uncomfortable answer, that's precisely what to discuss before the process starts, not during it.
InsolvencySupport.co.uk is operated by Xeinadin Corporate Recovery Limited (company no. 11415156), 8th Floor, 100 Barbirolli Square, Manchester M2 3BD. Our insolvency practitioners are licensed and regulated by the ICAEW.
This article is intended for general information purposes only and does not constitute financial, legal, or professional advice. Always take advice from a licensed insolvency practitioner about your specific position.