How Long Does It Take to Wind up a Business

If none of these options are used, the creditors` next step is to apply to the court for a liquidation hearing. A winding-up order is served and, from that point on, the directors have between 7 and 14 days before the hearing. To liquidate a business, certain documents must be prepared and submitted before the hearing. This includes the Certificate of Compliance, a Certificate of Continuing Debt and a copy of the Affidavit of Service. In most cases of compulsory liquidation, the time between the imminent initial closure and the conclusion of the legal proceedings is usually around three months. However, that`s only the time it takes to approve the store closing. At The Insolvency Experts, we have a lot of experience advising clients on issues such as the duration of a company`s liquidation, as well as other information about the duration of a liquidation process. In this summary, we look at how long it takes to liquidate a company and conduct a major liquidation procedure. The paperwork required of the practitioner should not be underestimated; These parts can last 1 to 2 years or even longer.

The larger the company in terms of assets and creditors, the longer liquidation usually takes. The application for liquidation must be published at least seven days before the date of the liquidation hearing and seven days after service of the application for liquidation. This means that the company effectively has 14 days to save itself. The London Gazette advertisement contains the following information: Liquidation often occurs when a company can no longer pay its debts, resulting in the sale of the company`s assets to pay creditors. The liquidation process can be voluntary or ordered by a court, with the ultimate goal in both cases being to „liquidate” the business. As for the length of a liquidation process, the appointment of a liquidator who takes control of the company and the assets of the directors usually takes between one and two weeks. However, if more than 90% of shareholders agree in the short term, liquidation can take place within seven days, which is the legal minimum notice period for creditors. If the court decides to make a winding-up order, a formal insolvency practitioner is appointed to act as liquidator of the insolvent company. At this point, there is nothing the directors of the company can do to prevent the closure of their company. The company`s assets are sold, the company is closed, and the conduct of the company`s directors is investigated. The consequences if wrongdoing is discovered could be expulsion of directors for up to 15 years or personal liability for a portion of the corporation`s debts.

Usually, it can take about 8 to 10 weeks for a business to be liquidated. Although Covid has changed the calendar. We can guide you through the process, no matter which side you`re on. In both cases, however, this is only the time needed to approve the liquidation. After approval, the appointment of a receiver, the sale of the company`s assets, the agreement of creditors` claims and the calculation of the return for them may extend the liquidation procedure between three months and one year. If you are considering liquidating your business, Irwin Insolvency`s experienced team can help you decide which insolvency measures are best for your business. A business may be legally compelled to dissolve by a court order. In such cases, the company is responsible for appointing a liquidator to manage the sale of assets and the distribution of the proceeds to creditors. There is no legal deadline for the liquidation of the company and the duration depends on the situation of the company and the type of liquidation carried out. In the case of a compulsory liquidation (or liquidation order), the time until the court proceedings is usually about 3 months.

In both cases, however, this is only the time needed to approve the liquidation. Once this operation is completed, an announcement must be published in the Official Journal so that a meeting of creditors can take place within 14 days.