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Frequently asked questions
What is the difference between a CVL and an MVL in Fulford?
A Creditors Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts. It is initiated by the directors and involves a meeting of creditors. A Members Voluntary Liquidation (MVL) is used for a solvent company where directors wish to close the business and distribute assets, often for tax efficiency. Our liquidators will assess your solvency status to recommend the correct procedure.
How much does it cost to appoint a company liquidator in Fulford?
The cost varies based on the complexity of the case and the number of assets and creditors. For a straightforward CVL, we often provide a fixed fee, which typically ranges from £4,000 to £8,000 plus VAT and disbursements. For an MVL, fees are often based on the value of assets realised. We always provide a detailed quote before any work commences, with no hidden charges.
Can a liquidator help if my company has already received a winding-up petition?
Yes, acting quickly is essential. If a winding-up petition has been presented, you have limited time to respond. Our urgent intervention can help negotiate with the petitioning creditor, potentially arrange a payment plan, or place the company into a CVL to prevent a compulsory winding-up order, which carries more severe consequences for directors.
What are the legal duties of directors during a Fulford company liquidation?
Directors must cooperate fully with the liquidator, providing all company records, accounts, and access to assets. They must not conceal any property or falsify records. Crucially, directors must avoid wrongful trading—continuing to trade while knowing the company cannot avoid insolvency. Our liquidators guide you through these duties to protect you from personal liability.
Will I be personally liable for company debts after liquidation in Fulford?
Generally, no. A limited company is a separate legal entity, so its debts are not the personal responsibility of directors, provided there has been no fraud, personal guarantees, or wrongful trading. If you have signed personal guarantees for business loans or leases, the lender can pursue you personally. We advise on all potential risks before liquidation begins.
How long does the Fulford company liquidation process take?
A CVL typically takes between 6 and 12 months to complete, depending on the complexity of asset realisation and creditor claims. An MVL can be completed in as little as 3 to 6 months if the company's affairs are straightforward. The process concludes with the company being formally dissolved and struck off from the Companies House register.
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