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Makesworth
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Frequently asked questions
What is the difference between a CVL and an MVL for company liquidation in Croydon?
A Creditors Voluntary Liquidation (CVL) is used for insolvent companies that cannot pay their debts. An MVL (Members Voluntary Liquidation) is for solvent companies where directors wish to close the business and distribute assets, often for tax efficiency. Our Croydon liquidators will assess your financial position and recommend the correct procedure.
How much does company liquidation cost in Croydon?
Costs vary depending on the complexity of the company's affairs, number of creditors, and asset structure. For a straightforward CVL, fees typically start from around £4,000 plus VAT, but we provide a fixed-fee quote after an initial review. MVL costs are often similar but may be reduced if the company has minimal assets and liabilities.
How long does the liquidation process take in Croydon?
A Creditors Voluntary Liquidation can be completed in as little as 6 to 8 weeks from the date of the creditors' meeting, though final dissolution of the company may take several months. An MVL usually takes 6 to 12 months to allow for the distribution of assets and tax clearance from HMRC. Our liquidators keep you informed at every stage.
Can I continue trading while my company is being liquidated in Croydon?
No, once a winding-up resolution is passed and a liquidator is appointed, directors lose control and trading must cease immediately. However, in the period before liquidation, you can continue to trade if it is in the best interest of creditors, but you must not take on new credit. Our advisors can guide you on the correct timing.
What happens to company assets and employees during liquidation in Croydon?
The liquidator will take control of all company assets, sell them, and distribute the proceeds to creditors in the legal order of priority. Employees will be made redundant, and they may be able to claim unpaid wages, holiday pay, and redundancy from the National Insurance Fund. We provide clear guidance to both directors and staff.
Will I be personally liable for company debts after liquidation in Croydon?
Generally, no. Limited liability protects directors from personal liability for company debts unless there has been wrongful trading, fraudulent activity, or personal guarantees were signed. Our Croydon liquidators will investigate the directors' conduct, but if you have acted properly, you will not be held personally responsible.
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