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Frequently asked questions
What is the difference between a CVL and an MVL in Abinger Hammer?
A Creditors Voluntary Liquidation (CVL) is used for insolvent companies where liabilities exceed assets. An MVL is for solvent companies that wish to close, often to distribute retained profits tax-efficiently. Our liquidators in Abinger Hammer will assess your situation and recommend the correct procedure.
How much does a company liquidation cost in Abinger Hammer?
Costs vary based on the complexity of the case. For a straightforward CVL, fixed fees typically range from £4,000 to £8,000 plus VAT, but we offer bespoke quotes after a free review. MVL costs are often similar, depending on the number of assets and creditors.
Can I continue trading after starting liquidation in Abinger Hammer?
No. Once a liquidator is appointed, your powers as director cease. You must stop trading immediately to avoid wrongful trading claims. However, the liquidator may continue trading for a short period to sell stock or complete contracts, under their authority.
What are my duties as a director during liquidation in Abinger Hammer?
You must cooperate fully with the liquidator, provide all company records and financial information, attend meetings if required, and disclose any transactions that may be considered preferences or transactions at undervalue. Failure to cooperate can lead to personal liability or disqualification.
Will I be personally liable for company debts in Abinger Hammer?
Generally, no. Limited liability protects directors from personal responsibility for company debts, unless you have given personal guarantees, acted fraudulently, or traded wrongfully. Our liquidators will review your case to ensure you are protected where possible.
How long does the liquidation process take in Abinger Hammer?
A CVL typically completes within 6 to 12 months, depending on the realisation of assets and the complexity of creditor claims. An MVL can be faster, often closing in 3 to 6 months. Your liquidator will provide a timeline based on your specific circumstances.
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