Close Menu
UK Liquidators

Can I buy back assets during or after a liquidation?

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Repurchasing assets during or after company liquidation

One of a liquidator’s main aims during company liquidation is to maximise the returns for creditors. This is achieved by selling the business’ assets following a professional valuation, so creditors receive repayments that are as high as possible.

Sometimes directors of the company in liquidation have plans to begin another venture, and need certain assets to start up. Assets such as vehicles, fixtures and fittings, or IT equipment, may be needed, and it’s possible for the directors to purchase these assets from the old company.

Worried about your Bounce Back Loan?

If you are a limited company director worried about how you are going to repay your Bounce Back Loan, we are here to help. As licensed insolvency practitioners we can talk you through your options when it comes to repaying your outstanding Bounce Back or CBILS Loans, as well as handling all negotiations with creditors on your behalf. Call our team today on 0800 063 9262 .

Timing is important when buying back assets in liquidation

If you’re thinking of buying back assets from your liquidated company, it’s important to consider the timing of the purchase. If you buy assets from the business before a liquidator is appointed, it’s highly likely to be viewed as a transaction that has worsened the position of creditors.

The purchase must be controlled by the liquidator, who will ensure a fair market value has been placed on the assets in question. With creditors’ interests first and foremost, the liquidator must realise the highest returns possible and not sell the assets at undervalue.

So although you can buy back assets during or after your company’s liquidation as long as the transaction is overseen by the office-holder, you shouldn’t purchase any assets of your failing company prior to the liquidator’s appointment.

Why buy back assets in a liquidation?

Buying assets in a liquidation sale can be cost-effective, especially when you’re setting up a new business and may have limited funds available. When purchased under the strict rules of insolvency it can help the start up process, and you also have the benefit of practical knowledge of the assets.

Having used them in the old company you know their history, their value to the business, and whether they represent good value for money, which can help with the transition from one company to another.

The risk of buying back assets before a liquidation

If you purchase an asset of your company after the business enters insolvency but before a liquidator is appointed, and the purchase price is below fair market value, you risk allegations of misconduct.

These transactions are called ‘transactions at undervalue’ and the liquidator can have them reversed, or recover the asset that was purchased. The liquidator will scrutinise the company’s books for transactions of this type for up to two years prior to entering insolvency.

The risk for you and other directors is significant if you buy back assets before a liquidator takes office, rather than during or after a liquidation. If you would like more information on the rules surrounding the buying back of assets in liquidation, please contact one of our expert team.

UK Liquidators are liquidation specialists and can offer independent professional advice. We offer same-day consultations free-of-charge, and operate a network of offices throughout the country.

Jonathan Munnery
Partner

If you are considering liquidation for your limited company, taking advice from a licensed insolvency practitioner can help you understand your options.

Is liquidation the right option for you?

Take our 60 second test and find out

Company health risk assessment
Types of liquidation available
Alternatives to liquidation
Understand your next steps
60 Second Liquidation Test
Did you know?
Are you eligible to claim Director Redundancy?
As a Limited Company Director you may be entitled to claim Director Redundancy - Average UK claim is £9,000*.
Pages related to Can I buy back assets during or after a liquidation?
Business People Holding Glass Money Jar
What is the new Covid-19 Recovery Loan Scheme?
Business Woman In Financial Difficulty
My company cannot survive further Covid restrictions
Businessmen Having A Dispute
Director dispute over liquidation
More on Liquidation
The difference between liquidation and administration
Members’ Voluntary Liquidation (MVL)
Creditors’ Voluntary Liquidation (CVL)
Company Liquidation
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Officially the largest UK Liquidations Company
Supporting 25,000+ Limited Company Directors Nationwide
I had been trying to keep my café afloat for months but to no avail. I decided to take insolvency advice to see what my options were. I cannot fault the service provided by UK Liquidators during every stage of the liquidation.
Ahmed Kanwar | Company Owner
Approaching UK Liquidators to handle my CVL was one of the best decisions I could have made. The advice given was clear and easy to understand and the service was first class from start to finish.
Chloe Wright | CEO
Although nobody goes into business expecting their company to fail, UK Liquidators were supportive and helpful through the whole liquidation process, and I would have no hesitation recommending them to others in the same position.
Paul Winter | Director
Common Liquidation Questions
Businessman Calculating His Debts
What happens to debts after liquidation?

One of the main benefits of trading as a limited company is that directors are given the protection afforded by limited liability.

Mobile2
What is a Members’ Voluntary Liquidation?

A Members’ Voluntary Liquidation – or MVL – is a formal liquidation process designed as a way for solvent companies to wind down their operations.

Depressed Businessman
What is a Creditors' Voluntary Liquidation

A Creditors’ Voluntary Liquidation – or CVL – is a formal insolvency process for insolvent limited companies.

Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout
Logo Tma
Logo Business Recovery
Logo Cse
Logo Iip

Looking for immediate support?

Complete the below to get in touch

 
 
 
 
 
100% Free & Confidential Advice