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Frequently asked questions
What is the role of a company liquidator in Barnard Castle?
A licensed company liquidator takes formal control of an insolvent or solvent company to wind down its affairs. They realise assets, settle creditor claims, and distribute any remaining funds to shareholders. In Barnard Castle, we handle the entire liquidation process, including statutory filings, communication with HMRC and other creditors, and advising directors on their legal duties.
How much does company liquidation cost in Barnard Castle?
The cost of liquidation varies depending on the complexity of the company's financial affairs, asset base, and number of creditors. For a Creditors Voluntary Liquidation (CVL), typical fees range from £4,000 to £8,000 plus VAT, often paid from company assets. We offer fixed-fee quotes after a free initial consultation, with no hidden charges.
Can I continue trading after my company enters liquidation?
No, once a liquidation order is made or a CVL is approved by creditors, the liquidator takes control and the company must cease trading immediately. However, in some cases, we can help you buy back assets or transfer the business to a new company before liquidation begins, subject to compliance with insolvency law.
What is the difference between CVL and MVL?
A Creditors Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts. A Members Voluntary Liquidation (MVL) is for solvent companies that wish to close, often for tax efficiency when extracting retained profits. Our team in Barnard Castle can assess your situation and recommend the correct procedure.
Will I be personally liable for company debts after liquidation?
In most cases, directors are not personally liable for company debts if they have acted properly. However, if there is evidence of wrongful trading, fraudulent activity, or personal guarantees, you could be held responsible. We provide advice on avoiding personal liability and can represent you in any director conduct investigations.
How long does a company liquidation take in Barnard Castle?
A straightforward CVL typically takes between 6 to 12 months to complete, depending on asset realisation and creditor claims. An MVL can be faster, often closing within 3 to 6 months. Our team works efficiently to conclude the process as quickly as possible, keeping you informed at every stage.
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