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Frequently asked questions
What is the difference between a CVL and an MVL?
A Creditors Voluntary Liquidation (CVL) is used for an insolvent company that cannot pay its debts. An MVL (Members Voluntary Liquidation) is for a solvent company that wants to close, usually for retirement or restructuring. In a CVL, creditors are involved in the process, while in an MVL, shareholders appoint the liquidator and debts are paid in full.
How much do company liquidators in Ashtead charge?
Fees vary based on the complexity of the case, the size of the company, and the number of assets. Most Ashtead liquidators offer a fixed-fee for a CVL, which typically ranges from £3,000 to £6,000 plus VAT, but this can be higher for complex cases. Always request a detailed written quote before proceeding.
Can I keep trading while my company is being liquidated?
Once a liquidation order is made or a resolution is passed, trading must stop immediately, except for the liquidator's actions to preserve asset value. If you continue trading after insolvency, you may be personally liable for wrongful trading. Your liquidator will advise on the exact point trading must cease.
What happens to employees when a company is liquidated?
Employees are made redundant on the date the liquidation begins. They may be entitled to claim redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund (via the Redundancy Payments Service). The liquidator will provide each employee with a claim form (RP1) and guide them through the process.
Will I be personally liable for company debts after liquidation?
No, if the liquidation is handled correctly and you have not given personal guarantees or acted wrongfully (e.g., trading while insolvent, fraudulent activity), the company's debts are written off. However, directors can be held personally liable for wrongful trading, misfeasance, or if they have taken illegal dividends.
How long does a company liquidation take in Ashtead?
A Creditors Voluntary Liquidation typically takes between 6 and 12 months to complete, depending on asset realisation and creditor claims. An MVL can be completed in as little as 3 to 6 months. The liquidator must file final accounts and a final meeting before dissolution is finalised.
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