What types of liquidation are there?

There are three different typs of liquidation in the UK:

1. A solvent liquidation, called a ‘members voluntary liquidation’.  Here, all creditors are paid in full;
2. An insolvent ‘compulsory liquidation’.  Here, the creditors are not paid in full – indeed in 90% of cases, the unsecured creditors get nothing.  This is a process started off through the courts, the liquidation typically done by the ‘Official Receiver’;
3. An insolvent ‘creditors’ voluntary liquidation’.  Here, the creditors are not paid in full.  the courts are not involved in the process, the liquidation is done by a ‘licensed insolvency practitioner’, such as Paul.

You will find a summary of what’s involved in a solvent liquidation by going to our main website.