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Frequently asked questions
What is the difference between a CVL and an MVL in Hainault?
A Creditors Voluntary Liquidation (CVL) is used for insolvent companies where debts cannot be paid, while a Members Voluntary Liquidation (MVL) is for solvent companies wishing to close, often to extract capital gains treatment. Our liquidators in Hainault will assess your financial position and recommend the correct procedure.
How much does company liquidation cost in Hainault?
Costs vary depending on company complexity, asset values, and creditor numbers. For a CVL, fees typically range from £3,000 to £6,000 plus VAT, and for an MVL, from £2,500 to £4,000. We provide a fixed-fee quote after a free consultation, ensuring no hidden charges.
Can I keep trading while my company is in liquidation?
Once liquidation begins, directors lose control, and the liquidator takes over. However, before liquidation, you can continue trading if it improves creditor returns, but you must avoid wrongful trading. Our advisors will guide you on legal trading during the pre-liquidation period.
What happens to company assets and employees during liquidation in Hainault?
The liquidator realises all company assets to pay creditors in a statutory order. Employees are made redundant, and they may claim statutory redundancy payments from the National Insurance Fund. We handle employee notifications and support claims to ensure compliance.
Are directors personally liable for company debts in liquidation?
Generally, directors are not personally liable for company debts if they acted honestly and within the law. However, if there is evidence of wrongful trading, fraudulent activity, or personal guarantees, liability may arise. Our liquidators investigate director conduct and advise on potential risks.
How long does the liquidation process take in Hainault?
A CVL typically completes in 6 to 12 months, while an MVL can be finalised in 3 to 6 months, depending on asset realisation and creditor claims. Complex cases may take longer. We provide a timeline estimate after reviewing your company's affairs.
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