Liquidator VS Official Receiver – The Differences
Differences: Liquidator vs Official Receiver.
Liquidator vs Official Receiver. – The Official Receiver is a civil servant. They are, however, part of the Insolvency Service. Duties, therefore, involve personal bankruptcies, as well as compulsory liquidation.
Insolvency Practitioners acting as Liquidators are, however, not part of the Insolvency Service. They are, therefore, a separate commercial entity.
So which is best suited for my company and me?
Liquidator vs Official Receiver when Insolvent?
Is your company then insolvent or solvent? If your company, however, is struggling to pay bills, etc., then the company is then insolvent by “Cash Flow“. Further, if a Winding Up Petition is issued and no action is taken to defend it, the court appoints the “Official receiver” to commence Liquidating your company using a Compulsory Liquidation. It is the duty of the “Official Receiver” however, to first pay creditors of the company, and not shareholders or directors.
Liquidator when solvent?
If the company is, therefore “Solvent” and can then demonstrate its ability to discharge all its outstanding debts. Then it may appoint its own chosen Liquidator to realize and then distribute available monies possible via a Members Voluntary Liquidation.
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