Professional Company LiquidatorsServing Rugeley Businesses

The cost of a Creditors' Voluntary Liquidation (CVL) usually ranges from £3,000 to £6,000 plus VAT and disbursements, depending on the complexity of the case. Fees are typically paid from company assets, but if assets are insufficient, directors may need to fund the process personally. Always obtain a fixed-fee quote before engaging.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, is eligible. Directors can propose a CVL if the company has more liabilities than assets. Alternatively, creditors can petition for a compulsory liquidation. A licensed insolvency practitioner will assess your eligibility and recommend the most appropriate route.

The process begins with a meeting of directors to pass a resolution for liquidation. A licensed insolvency practitioner is then appointed as liquidator. They call a meeting of creditors within 14 days to confirm the appointment. The liquidator then realises assets, investigates the company's affairs, and distributes funds to creditors in the statutory order.

A straightforward CVL can be completed within 6 to 12 months, but complex cases with substantial assets or legal issues may take longer. The liquidator must file final accounts and a return to Companies House, which can be delayed if investigations are ongoing. Your practitioner should provide a realistic timeline at the outset.

Yes, alternatives include a Company Voluntary Arrangement (CVA), administration, or informal restructuring. A CVA allows you to repay debts over time while continuing to trade. Administration provides a moratorium from creditors while a rescue attempt is made. Your practitioner can advise which option best suits your company's prospects.

Once a liquidator is appointed, their control over the company begins. You cannot continue trading in the normal course of business without the liquidator's consent. The liquidator may allow limited trading to sell stock or complete contracts, but this is at their discretion. Your authority as director ceases upon appointment.

The liquidator takes control of all company assets, including cash, equipment, stock, and property. They will sell these assets to raise funds for creditors. Secured creditors, such as banks, may have claims over specific assets. Any remaining funds are distributed to unsecured creditors in a statutory order of priority.

Generally, no, as a limited company provides a shield against personal liability. However, you may be personally liable if you have given personal guarantees, or if you have traded wrongfully or fraudulently. Directors' loans and unlawful dividends can also create personal liability. A licensed practitioner will advise on your specific exposure.

The liquidator acts as an agent of the company, not as an advisor to directors. Their duties include realising assets, investigating the causes of insolvency, submitting statutory reports, and distributing funds to creditors. They also have powers to pursue directors for misfeasance or wrongful trading if evidence is found.

You can, but it is often advisable to seek independent advice from a licensed insolvency practitioner who is not your regular accountant. Your accountant may lack specialist insolvency knowledge, and there may be a conflict of interest. A regulated practitioner listed on AccountingFirms can provide impartial guidance and ensure compliance with insolvency law.