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Frequently asked questions
What is the difference between CVL and MVL in Broughton In Furness?
A Creditors Voluntary Liquidation (CVL) is used for insolvent companies, where liabilities exceed assets, and is initiated by directors to wind up the business. A Members Voluntary Liquidation (MVL) is for solvent companies, where directors declare solvency and the company is wound up for reasons like retirement or restructuring. Our liquidators in Broughton In Furness will assess your financial status to recommend the correct procedure.
How much does a company liquidation cost in Broughton In Furness?
Costs vary based on the complexity of your company's affairs, including asset realisation, creditor numbers, and legal issues. For a CVL, fees are typically paid from the company's assets. In Broughton In Furness, we provide transparent upfront quotes and will explain all potential costs during your free consultation. We aim to offer competitive fixed fees where possible, ensuring no hidden surprises.
Can I continue trading after appointing a liquidator?
No. Once a liquidator is appointed, their control over the company begins, and your powers as director cease. Trading must stop immediately except for actions necessary to preserve asset value or as directed by the liquidator. Our team in Broughton In Furness will guide you through the handover process and advise on any limited trading exceptions to ensure legal compliance.
What happens to company debts after liquidation in Broughton In Furness?
Upon liquidation, the company is legally dissolved, and all unsecured debts are written off, provided the liquidation is properly conducted. Creditors can only claim against the company's assets, not your personal assets, unless there has been wrongful trading or personal guarantees. Our liquidators ensure all debts are handled correctly, giving you a clean break from company liabilities.
Will I be personally liable for company debts in liquidation?
Generally, no. Directors are not personally liable for company debts unless they have given personal guarantees, acted fraudulently, or engaged in wrongful trading. Our role includes investigating director conduct, but if you have acted in good faith, you will not be held personally responsible. We provide advice on minimising risks before and during liquidation in Broughton In Furness.
How long does a liquidation process take in Broughton In Furness?
The length varies, but a typical CVL can be completed in 6 to 12 months, depending on asset sales and creditor claims. MVLs are often faster, sometimes concluding in 3 to 6 months. Our liquidators in Broughton In Furness work efficiently to finalise all matters, including statutory reporting and final dissolution, as quickly as possible while ensuring full compliance.
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