The benefits of using a liquidation solicitor

If you own a business that has a large number of debts, you may find that your creditors go to court to place your company into liquidation. This can happen if your creditors think your business is or will become insolvent, and as such, may not be able to pay its debts. This court order is called compulsory liquidation and is a way for your creditors to obtain the money your business owes them.

Any business that receives a compulsory liquidation order from the courts should seek advice immediately from a liquidation solicitor. They have detailed knowledge of company legislation and can inform you whether the court order is valid, and what your options are. In most cases you have the right to contest the court order. Your liquidation solicitor can lodge the objections with the court. Your solicitor can also help you to prepare your case in order to fight the liquidation order itself.

Note you will have to show - with documentary evidence - that your business is not insolvent and can pay its debts. This would then mean the compulsory liquidation order is not valid. Your liquidation solicitor can help you to prepare the evidence you will need to put before the court that issued the original order. And in many cases you will also have to deal with the Official Receiver’s Office, as the court usually hands compulsory liquidation orders to them as they handle the day-to-day operation of these types of insolvency cases.

It is important not to ignore any compulsory liquidation order that your business receives. The faster you take action the more flexible your creditors will be. Often, your liquidation solicitor can negotiate a settlement that can avoid insolvency and the winding up of your company altogether. Use your solicitor, as they have gained great experience over the years that your business can draw upon.

If you would like to obtain legal advice about business liquidation, Contact Law can put you in touch with a local specialist business law solicitor / lawyer free of charge. So, if you have any questions or would like our help in finding local business law solicitors / lawyers please call us on 0800 1777 162 or complete the web-form above.