Compulsory liquidation is the forced closure of a limited company. The action to close the business is generally instigated by one of the company’s creditors and is often against the will of its shareholders or directors.
Compulsory liquidation is also known as Winding Up. This is because the process involves petitioning the High Court for a winding up order
to force the closure of the business.
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Bank accounts frozen
If a winding up process is started, this will generally have a significant impact on the company’s ability to trade. Its bank accounts will be frozen and none of the company’s assets can be sold without a validation order issued by the court.
The best way to understand which solution is right for your company is to speak to an expert.
The Beat My Debt forum is great place to start, giving online access to industry experts.
Alternatively you can call Beat My Debt free on 0800 077 6180 and speak directly to one of our expert advisors who will give free, independent and confidential advice.
