Compulsory Liquidation in Edinburgh

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

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 Edinburgh.

Get in touch

What Is Compulsory Liquidation in Edinburgh?

Compulsory liquidation in Edinburgh 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 Edinburgh.

Who Can Apply to Wind Up a Company in Edinburgh?

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

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

What Triggers Compulsory Liquidation in Edinburgh?

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

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

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

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

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

Can I Stop Compulsory Liquidation Once It Starts in Edinburgh?

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

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

What Are the Consequences for Directors in Edinburgh?

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

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

What Happens to Employees in Compulsory Liquidation in Edinburgh?

All employees are automatically made redundant in Edinburgh, 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 Edinburgh?

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

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

How Long Does Compulsory Liquidation Take in Edinburgh?

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

Will the Company’s Assets Be Sold in Edinburgh?

The Official Receiver or liquidator in Edinburgh 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 Edinburgh?

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

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

Can I Trade After Liquidation Starts in Edinburgh?

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

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

How Does Compulsory Liquidation Differ from Voluntary Liquidation in Edinburgh?

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

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

Is the Liquidation Process Public in Edinburgh?

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

Why Choose Fast Insolvency in Edinburgh?

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

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

Get Free Compulsory Liquidation Advice Today in Edinburgh

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

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

Get in touch