How to get a Liquidation Quote in the United Kingdom

Liquidation is a process that involves winding up a company's affairs and distributing its assets to its creditors and shareholders. In the UK, there are three main types of liquidation: compulsory liquidation, voluntary liquidation, and creditors' voluntary liquidation. Here's an overview of each type of Liquidation Quote and the steps involved:


Compulsory liquidation: This type of liquidation is initiated by a court order after a petition is filed by a creditor, shareholder, or the company itself. The court will appoint a liquidator to oversee the process.

Steps involved:


A creditor files a winding-up petition in court.

A hearing is held, and if the court agrees to the liquidation, a winding-up order is issued.

The appointed liquidator takes control of the company's assets and distributes them to creditors in order of priority.

Voluntary liquidation: This type of liquidation is initiated by the company's shareholders and is a viable option when the company is insolvent, and there is no prospect of recovery. There are two types of voluntary liquidation: members' voluntary liquidation (MVL) and creditors' voluntary liquidation (CVL).

Steps involved:


The company's shareholders pass a resolution to wind up the company and appoint a liquidator.

The liquidator takes control of the company's assets and distributes them to creditors in order of priority.

Creditors' voluntary liquidation (CVL): This type of voluntary liquidation is initiated by the company's directors and involves appointing a liquidator to oversee the process of distributing the company's assets to its creditors.

Steps involved:


The company's directors pass a resolution to wind up the company and appoint a liquidator.

The liquidator takes control of the company's assets and distributes them to creditors in order of priority.



It's important to note that liquidation is a complex process, and it's essential to seek professional advice before proceeding. Companies should consult with an insolvency practitioner or a solicitor who specializes in insolvency law to ensure they are complying with all relevant laws and regulations.


Location: United Kingdom

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