Liquidators are not your friend!
If you find yourself trapped in an impossible financial corner you may have been told by your Financial Advisor, Accountant, Solicitor or even a friend to contact a liquidator and place your business into Voluntary Liquidation. But this may not be the right option for you. You see, the mistaken idea is that because you are paying the Liquidator they will look after your best interests and help you get back on your feet. Sounds logical, right? But the reality is, NOTHING COULD BE FURTHER FROM THE TRUTH!
What we have found is that Liquidators, Administrators and Receivers are usually nice people … but, once you appoint them, it is their responsibility to look after your Creditors (people you owe money to) not you! Their job is to sell off your assets and recoup as much cash as possible from your company and pay it to your creditors! If for one minute you think they will consider your best interests you are sadly mistaken. You do not even factor into the equation.
Once you sign the documents to appoint a Liquidator, that’s it! You’re no longer in control. You are no longer the Director. You no longer have any say over the company, its customers, or assets. T they’ll even change the locks on the doors. The liquidator (you paid) will do whatever they think is in the best interests of the creditors. And in most cases you have just paid for your own business death! Is that what you want?
Now maybe you’re thinking this can’t be right. Maybe you still think that because you’re paying the Liquidator’s bill you have a say in what happens next. Here’s why you don’t:
The liquidation process is highly regulated. If the liquidator you appoint steps outside the regulations they face serious consequences. They have a responsibility to act within the guidelines and quite simply that means to sell off whatever they can and pay it to your creditors.