Compulsory Liquidation vs Creditors Voluntary Liquidation

A creditor will usually drive a Compulsory Liquidation and a Company Director will drive a Creditors Voluntary Liquidation.

A Compulsory Liquidation is initially managed by the Government insolvency department, the Official Receivers Office.

If there are specific assets to realise or potential enforcement action against Company Directors then the Official Receiver will more than likely pass the case over to an independent firm of insolvency practitioners.

One key point to remember is that in a Compulsory Liquidation it is unlikely that there will be an option to buy back the trade and assets of the company.  Whereas in a Creditors Voluntary Liquidation the opposite is usually the case.