Compulsory Liquidation in Durham

At Fast Insolvency, we offer professional support to directors whose companies are facing or undergoing compulsory liquidation in Durham.

This court-led process is triggered when a creditor petitions to wind up a company over unpaid debts.

Contact us now for free, confidential advice if your business has received a winding-up petition or is at risk of compulsory liquidation in Durham.

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What Is Compulsory Liquidation in Durham?

Compulsory liquidation in Durham is a legal process where the court orders a company to be closed and its assets sold to pay creditors.

This process begins with a winding-up petition filed by a creditor, often due to unpaid debts exceeding £750 in Durham.

Who Can Apply to Wind Up a Company in Durham?

Any creditor, shareholder, or director can apply, but most petitions come from creditors such as HMRC in Durham.

The court in Durham must be satisfied that the company is insolvent and unable to pay its debts.

What Triggers Compulsory Liquidation in Durham?

The most common trigger is non-payment of debt following a statutory demand, court judgment, or ongoing default in Durham.

Once a creditor files a petition, the court sets a hearing date to determine whether to grant a winding-up order in Durham.

What Happens After a Winding-Up Order Is Made in Durham?

Control of the company passes immediately to the Official Receiver in Durham, who investigates director conduct, closes the business, and arranges the sale of assets.

The company in Durham ceases trading and is eventually struck off the Companies House register.

Can I Stop Compulsory Liquidation Once It Starts in Durham?

Yes, but only before the court grants the winding-up order in Durham.

You can pay the debt in full, dispute the petition, or seek a Company Voluntary Arrangement (CVA) or administration to avoid liquidation in Durham.

What Are the Consequences for Directors in Durham?

Once liquidation begins in Durham, directors lose control of the company and must cooperate fully with the Official Receiver.

They may also face investigation in Durham, and if misconduct is found, they could be disqualified or held personally liable.

What Happens to Employees in Compulsory Liquidation in Durham?

All employees are automatically made redundant in Durham, but they may be eligible to claim unpaid wages, redundancy pay, and holiday pay from the government’s Redundancy Payments Service.

Will I Be Personally Liable for Company Debts in Durham?

Directors are not personally liable for most company debts unless they’ve signed personal guarantees or engaged in wrongful trading in Durham.

If the court finds misconduct, personal liability could follow in Durham.

How Long Does Compulsory Liquidation Take in Durham?

The process can take 12 to 24 months in Durham, depending on the complexity of the company and how quickly assets are realised and creditors repaid.

Will the Company’s Assets Be Sold in Durham?

The Official Receiver or liquidator in Durham will sell company assets, such as stock, equipment, and property, to repay secured and unsecured creditors.

What Is the Role of the Official Receiver in Durham?

The Official Receiver is appointed by the court to manage the liquidation in Durham.

They investigate the company’s affairs, sell assets, deal with creditor claims, and assess director conduct during the lead-up to insolvency in Durham.

Can I Trade After Liquidation Starts in Durham?

Once the winding-up order is made in Durham, the company must cease trading immediately.

Continuing to trade could result in personal liability for debts incurred after liquidation begins in Durham.

How Does Compulsory Liquidation Differ from Voluntary Liquidation in Durham?

Compulsory liquidation is court-enforced and usually creditor-led, while voluntary liquidation is initiated by directors and shareholders in Durham.

In voluntary cases in Durham, directors have more control and can appoint their own licensed insolvency practitioner.

Is the Liquidation Process Public in Durham?

Winding-up petitions and liquidation orders are published in the London Gazette and recorded at Companies House in Durham, making them accessible to the public.

Why Choose Fast Insolvency in Durham?

We provide immediate, expert advice in Durham for companies facing compulsory liquidation.

Our licensed professionals in Durham act quickly to assess your situation, stop legal action where possible, and help protect you as a director in Durham.

Get Free Compulsory Liquidation Advice Today in Durham

If your company has received a winding-up petition in Durham or you’re worried about compulsory liquidation, time is critical.

Contact Fast Insolvency now in Durham for free, same-day advice and take control before the court acts.

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