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Frequently asked questions
What is the difference between a CVL and an MVL in Chandlers Ford?
A Creditors Voluntary Liquidation (CVL) is used for insolvent companies that cannot pay their debts, where a licensed insolvency practitioner realises assets and distributes proceeds to creditors. A Members Voluntary Liquidation (MVL) is for solvent companies, typically used by directors who wish to retire or move on, allowing tax-efficient extraction of retained profits and formal closure of the company.
How much does company liquidation cost in Chandlers Ford?
The cost of liquidation varies based on the complexity of the company's affairs, asset values, and creditor structure. For a straightforward CVL, fees often range from £4,000 to £8,000 plus VAT, but we provide fixed-fee quotes after a free initial consultation. MVL costs are similar but may be higher if asset realisations are complex. Always request a written breakdown before proceeding.
Can I keep my business assets after liquidation?
In a CVL, assets are sold to repay creditors, so you generally cannot keep them unless you purchase them from the liquidator at market value. In an MVL, you can retain assets by transferring them out before liquidation or by receiving them as part of the capital distribution, subject to tax rules. Our advisors can explain your options in detail.
What happens to employees during a company liquidation?
Employees are automatically made redundant when a company enters liquidation. The liquidator handles statutory redundancy payments, notice pay, and unpaid wages through the National Insurance Fund. They also assist with claims for holiday pay and pension contributions. We ensure all employee rights are respected and communication is clear throughout the process.
How long does the liquidation process take in Chandlers Ford?
A CVL typically completes within 6 to 12 months, depending on the complexity of asset sales and creditor claims. An MVL can be faster, often concluded in 3 to 6 months, after which the company is dissolved. The timeline may extend if there are legal disputes, outstanding tax investigations, or difficult asset realisations.
Are directors personally liable for company debts after liquidation?
Generally, directors are not personally liable for company debts if they have acted within the law and not traded wrongfully or fraudulently. However, if you have given personal guarantees, those debts remain enforceable. A liquidator may also investigate conduct and could pursue claims for misfeasance if assets were misused. Professional advice is crucial.
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