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Frequently asked questions
What is the difference between CVL and MVL for a company in Bexleyheath?
A Creditors' Voluntary Liquidation (CVL) is used for an insolvent company that cannot pay its debts, where directors choose to wind up the business voluntarily. A Members' Voluntary Liquidation (MVL) is for a solvent company, where directors and shareholders decide to close the company, often for tax efficiency. Our licensed liquidators will assess your financial position and recommend the correct procedure for your situation.
How much does company liquidation cost in Bexleyheath?
The cost of liquidation varies based on the complexity of the company's affairs, the number of assets and creditors, and the chosen procedure. We provide transparent, fixed-fee quotes after a free initial consultation. For a CVL, fees are typically paid from company assets, while for an MVL, fees are agreed with shareholders. Contact us for a tailored quote.
Can I continue trading after starting liquidation?
Once a liquidation order is made or a resolution is passed to wind up the company, directors' powers cease, and the liquidator takes control. You cannot continue trading in the company's name, but the liquidator may continue trading for a short period to sell stock or complete contracts, maximising returns for creditors.
What happens to employees when a company goes into liquidation in Bexleyheath?
Employees are automatically dismissed when a company enters liquidation. 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 the necessary forms (e.g., RP1) and guidance on making claims.
How long does the liquidation process take in Bexleyheath?
The duration depends on the type of liquidation and the complexity of the case. A CVL typically takes 6 to 12 months to conclude, while an MVL can be completed in 3 to 6 months. However, if there are complex asset realisations or legal issues, the process may take longer. Your liquidator will provide a realistic timeline after reviewing your case.
Do I need to attend court for liquidation?
No, in most cases you do not need to attend court. For a CVL or MVL, the process is initiated by shareholder resolutions and creditor meetings, not by court proceedings. However, if a creditor petitions for compulsory liquidation, court attendance may be required. Our advisors will guide you through every step to avoid court involvement where possible.
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