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Frequently asked questions
What is the difference between CVL and MVL in Catterick Garrison?
A Creditors Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts, allowing directors to wind up the business under the supervision of a licensed insolvency practitioner. A Members Voluntary Liquidation (MVL) is for solvent companies where directors wish to close the business, often to extract retained profits tax-efficiently. In Catterick Garrison, we assess your financial position and recommend the correct procedure based on your solvency status.
How much does company liquidation cost in Catterick Garrison?
Liquidation costs vary depending on the complexity of your company's affairs, the number of creditors, and the assets involved. For a CVL, typical fees range from £3,000 to £6,000 plus VAT, but we provide fixed-fee quotes after a free initial consultation. MVL costs are often lower because the company is solvent and there are fewer legal complexities. We always provide a transparent breakdown before you commit.
Can I continue trading after appointing liquidators in Catterick Garrison?
Once a liquidator is appointed, they take control of the company, and directors cease to have management powers. You cannot continue trading after the liquidation order is made, except for limited actions to preserve asset value with the liquidator's permission. If you need to continue trading, we can discuss alternatives like administration or company voluntary arrangements before deciding on liquidation.
What happens to employees during liquidation in Catterick Garrison?
Employees are made redundant immediately upon the liquidation appointment, unless the liquidator retains them temporarily to assist with asset realisation. They can claim statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund through the Redundancy Payments Service. Our team guides you through employee communications and ensures all claims are submitted correctly.
Will I be personally liable for company debts after liquidation?
Directors are generally not personally liable for company debts if they have acted lawfully and not traded wrongfully. However, if you have given personal guarantees, those debts remain enforceable against you. Our liquidators in Catterick Garrison review your conduct and financial records to ensure no wrongful trading or misfeasance occurred, protecting your personal assets where possible.
How long does the liquidation process take in Catterick Garrison?
A CVL typically completes within 6 to 12 months, depending on asset realisation and creditor claims. MVL can be faster, often concluding in 3 to 6 months if the company has no complex assets. The liquidator must file final accounts and notify Companies House for dissolution, which takes at least 3 months after the final meeting. We keep you informed throughout the timeline.
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