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Frequently asked questions
What is the difference between CVL and MVL in Biggleswade?
A Creditors' Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts, allowing a licensed liquidator to wind up affairs and distribute assets to creditors. A Members' Voluntary Liquidation (MVL) is for solvent companies, where directors sign a declaration of solvency and the company is closed to distribute surplus assets to shareholders tax-efficiently. Our Biggleswade liquidators will assess your financial position and recommend the correct procedure.
How much does company liquidation cost in Biggleswade?
The cost of liquidation varies based on company complexity, asset value, and creditor numbers. For a CVL, fees typically range from £3,000 to £6,000 plus VAT, but we offer fixed-fee packages with no hidden charges. MVL costs are often lower, starting around £1,500. We provide a free, no-obligation quote after reviewing your company's accounts and liabilities.
Can directors of an insolvent company in Biggleswade avoid personal liability?
Directors can avoid personal liability if they act in the best interests of creditors from the point of insolvency and do not trade wrongfully. Our liquidators advise on your duties, help you document decisions, and ensure you do not make preferential payments or dispose of assets improperly. If you have already traded while insolvent, we can still guide you on mitigating risks.
What happens to employees when a company goes into liquidation in Biggleswade?
When a company enters liquidation, employees are automatically dismissed from the date of the winding-up order. They can claim redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund (via the Insolvency Service). Our liquidators provide employees with the necessary forms (RP1, RP2) and explain the claims process.
How long does the liquidation process take in Biggleswade?
A CVL typically takes 6 to 12 months to complete, depending on asset realisation and creditor claims. An MVL can be faster, often 3 to 6 months, if the company has no complex assets. Our team aims to conclude matters efficiently while ensuring full compliance with the Insolvency Act 1986.
Do I need a liquidator if my Biggleswade company has no assets or debts?
If your company has no assets or debts, you may be able to apply for voluntary strike-off (dissolution) using Form DS01, which is cheaper than liquidation. However, if there are any outstanding liabilities, even small ones, or if creditors may object, a formal liquidation is safer. Our liquidators can advise whether strike-off is appropriate or if a CVL is required to protect directors.
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