Two routes into insolvent liquidation
- Compulsory liquidation follows a winding-up order made by the court, usually on a creditor's petition.
- Creditors' voluntary liquidation (CVL) starts when the shareholders pass a resolution to wind up a company that cannot pay its debts. The directors choose this route, and the creditors get the final say on who the liquidator is.
Both end the same way: the liquidator sells what the company owns, pays creditors in the order the law sets, and the company is then dissolved.
The notices you will see in The Gazette
- Resolutions for winding-up: the shareholders' decision to liquidate.
- Appointment of liquidators: who the liquidator is and how to contact them.
- Notices to creditors and of intended dividends: deadlines for submitting claims before money is paid out.
- Final account: the liquidation is closing.
The same notice titles are used for a solvent members' voluntary liquidation. InsolvencyRadar tells the two apart by the notice type, so a solvent company is never shown as insolvent here.
What to do if the company owes you money
- Send a proof of debt to the liquidator named in the appointment notice.
- Do not wait for the dividend notice: its deadline can be short.
- Ask the liquidator about any goods covered by your retention of title terms.
- Reclaim the VAT on the unpaid invoices through bad debt relief where it applies.