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The procedure will be handled differently for a compulsory liquidation that it would be dealt with in a voluntary liquidation, so the following information is just a broad overview of the process.

Although there are events which must occur prior to petitioning the Court, it is first necessary to have a basic understanding of the different types of liquidation.

One of the biggest creditors to petition the Court is HMRC when taxes are owed and government believes the company to be irreparably insolvent.

Members Voluntary Liquidation – When a company is solvent and able to pay outstanding debt, a Members Voluntary Liquidation (MVL) can be commenced. Creditors Voluntary Liquidation –,’ the first word is actually Creditors.

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