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Frequently asked questions
What is the difference between CVL and MVL in Chorleywood?
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 for solvent companies that wish to close voluntarily, often for tax efficiency or retirement. Our licensed liquidators in Chorleywood will assess your financial position and recommend the correct procedure.
How much does company liquidation cost in Chorleywood?
Liquidation costs vary based on company size, asset complexity, and creditor structure. Typically, a CVL can cost between £3,000 and £6,000 plus VAT, while an MVL may range from £2,500 to £5,000. We provide fixed-fee quotes upfront with no hidden charges. Contact us for a tailored estimate based on your specific circumstances.
Can I keep trading after appointing a liquidator?
No. Once a liquidator is formally appointed, they take control of the company, and directors' powers cease. However, you can continue trading up until the point of appointment, provided you do not worsen creditor positions. Our advisors will help you plan the cessation of trading to avoid any wrongful trading claims.
What are the legal duties of directors during liquidation?
Directors must cooperate fully with the liquidator, provide all company records, and disclose any transactions that may be considered preferences or transactions at undervalue. Failure to comply can result in personal liability, disqualification, or even criminal prosecution. Our Chorleywood liquidators guide directors through their obligations to ensure full compliance.
How long does the liquidation process take in Chorleywood?
A CVL typically takes between 6 to 12 months to complete, depending on asset realisation and creditor claims. An MVL can be faster, often closing within 3 to 6 months. The timeline also depends on HM Revenue & Customs (HMRC) and other creditor responses. We aim to expedite the process while ensuring all legal requirements are met.
Can I start a new business after liquidation?
Yes, you can start a new business after liquidation, but there are restrictions if you have been disqualified as a director. You may also face restrictions on using the same or a similar company name within five years, unless you obtain court permission or meet specific exemptions. Our team provides post-liquidation advice to help you move forward legally and confidently.
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