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Frequently asked questions
What is the difference between CVL and MVL in Elstree?
A Creditors Voluntary Liquidation (CVL) is used when a company is insolvent, meaning it cannot pay its debts. An MVL (Members Voluntary Liquidation) is for solvent companies where directors wish to close the business and distribute assets to shareholders. Our liquidators in Elstree will assess your financial position and recommend the correct procedure.
How much does company liquidation cost in Elstree?
The cost of liquidation varies depending on the complexity of the company, the number of creditors, and the assets involved. For a simple CVL, fees typically start from around £4,000 plus VAT, but we provide a fixed-fee quote after a free initial review. MVL costs are often based on the value of assets distributed.
Can I continue trading after appointing a liquidator in Elstree?
No. Once a liquidator is appointed, they take control of the company and your trading authority ceases immediately. The liquidator's role is to realise assets, settle liabilities, and wind down operations. However, in some cases, the liquidator may allow trading to continue temporarily to maximise asset value, but only under their supervision.
What happens to employees when a company goes into liquidation in Elstree?
Employees are automatically made redundant when a liquidator is appointed. The liquidator will provide the necessary redundancy paperwork, and employees can claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund (via the Redundancy Payments Service). Our team guides both directors and employees through this process.
Are directors personally liable for company debts in Elstree?
Generally, directors are not personally liable for company debts if they have acted legally and responsibly. However, personal liability can arise if there is evidence of wrongful trading, fraudulent trading, or misuse of company funds. Our liquidators will review director conduct and advise on any potential risks during a free consultation.
How long does the liquidation process take in Elstree?
A CVL typically takes 6 to 12 months to complete, depending on the complexity of asset realisation and creditor claims. An MVL can be completed faster, often within 3 to 6 months. The liquidator must file final accounts with Companies House and HMRC before the company is formally dissolved.
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