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Frequently asked questions
What is the difference between a CVL and an MVL in Callington?
A Creditors Voluntary Liquidation (CVL) is used when a company is insolvent, meaning it cannot pay its debts as they fall due. An MVL (Members Voluntary Liquidation) is only for solvent companies where directors can swear a declaration of solvency, typically for restructuring or retirement. In a CVL, a licensed insolvency practitioner sells assets and distributes proceeds to creditors. In an MVL, surplus assets are returned to shareholders after all debts are settled.
How much does it cost to appoint a company liquidator in Callington?
The cost varies based on the complexity of the case, the number of creditors, and the value of assets. For a simple CVL, fees typically range from £3,000 to £6,000 plus VAT, but we always provide a fixed fee quote after a free initial assessment. Our fees are paid from the company's assets, and we do not charge upfront personal fees to directors unless there are specific personal guarantees involved. We will explain all costs clearly before you proceed.
Can a company liquidator help if I have personal guarantees on business loans?
Yes, we can help you negotiate with lenders who hold personal guarantees. In a CVL, we will attempt to agree a settlement for less than the full amount owed, or negotiate a payment plan that is affordable. We also advise on the timing of liquidation to minimise the risk of personal liability, but you should seek independent legal advice on guarantee enforcement. Our role is to protect the company's creditors and ensure fair treatment for all parties.
How long does a company liquidation take in Callington?
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 if the company is straightforward. The initial appointment process can be done within 2 to 4 weeks after you provide the necessary financial information. We will keep you informed at every stage and work to expedite the process where possible.
What are the legal duties of directors when a company is insolvent in Callington?
Directors must act in the best interests of creditors once they know the company is insolvent. This includes avoiding wrongful trading, not taking on new credit they cannot repay, and not disposing of assets at undervalue. You must also provide accurate financial records and cooperate fully with the liquidator. Failure to do so can lead to personal liability, disqualification, or even criminal prosecution. We provide a full director's duties checklist during our consultation.
Can I continue trading after my company enters liquidation?
No, once a company enters liquidation, the liquidator takes control and the directors' powers cease. However, in some cases, the liquidator may allow the company to continue trading for a short period to complete contracts or sell stock as a going concern. This is at the liquidator's discretion and only if it benefits creditors. For solvent closure via MVL, trading must cease before the liquidation starts, unless a distribution in specie is planned.
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