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Frequently asked questions
What is the difference between CVL and MVL for my Abingdon company?
A Creditors Voluntary Liquidation (CVL) is used for an insolvent company that cannot pay its debts. A Members Voluntary Liquidation (MVL) is for a solvent company, often used to close a business and distribute assets in a tax-efficient way. Our liquidators in Abingdon can assess your financial position and recommend the correct procedure.
How much does it cost to appoint a company liquidator in Abingdon?
Costs vary depending on the complexity of the case. For a straightforward CVL, we often offer a fixed fee, which includes the statutory costs of the liquidation. For an MVL, fees are typically based on the time involved and the value of assets. We provide a clear, written quotation before any work begins, so there are no hidden surprises.
Can I continue to trade if my Abingdon company is in liquidation?
Once a liquidation order is made, the liquidator takes control of the company, and directors' powers cease. You cannot continue trading under the same company name. However, you may be able to buy back assets or start a new business, subject to certain restrictions. We can advise on the legal implications and help you plan your next steps.
What happens to employees when a company goes into liquidation in Abingdon?
Employees are automatically made redundant when a company enters liquidation. The liquidator will assist with the necessary paperwork, including issuing redundancy notices and claiming statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund. We ensure your employees understand their rights and receive what they are owed.
How long does a company liquidation take in Abingdon?
A Creditors Voluntary Liquidation typically takes between 6 and 12 months to complete, depending on the complexity of the asset realisation and any legal issues. A Members Voluntary Liquidation can be concluded more quickly, sometimes within 3 to 6 months. Our liquidators aim to complete the process efficiently while ensuring all legal duties are fulfilled.
Will I be personally liable for company debts if I choose liquidation?
In most cases, directors are not personally liable for company debts if the company is liquidated properly. However, if there is evidence of wrongful trading, fraudulent activity, or personal guarantees, you may be held responsible. Our licensed insolvency practitioners will review your conduct and provide guidance to minimise personal risk.
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