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Frequently asked questions
What is the difference between a CVL and an MVL in Haywards Heath?
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 where directors can declare solvency and the company has surplus assets to distribute. In Haywards Heath, our liquidators will assess your company's financial status and recommend the appropriate procedure, ensuring you meet all legal obligations and achieve the desired outcome.
How much does company liquidation cost in Haywards Heath?
The cost of liquidation varies based on the complexity of the company's affairs, the number of creditors, and the assets involved. In Haywards Heath, fees typically range from £1,500 to £5,000 for a straightforward CVL, but we always provide a fixed-fee quote after an initial free consultation. Our fees are transparent, and we ensure no hidden costs. We can also advise on funding options if the company has no assets.
Can I continue trading while my company is being liquidated?
No, once a liquidation order is made or a CVL is approved, the company ceases trading immediately, except for actions necessary to preserve asset value or complete the liquidation process. Our liquidators in Haywards Heath will take control of the company's affairs, but we will work with you to ensure a smooth handover. If you are considering liquidation, it is crucial to stop taking on new credit to avoid personal liability for wrongful trading.
What are the legal duties of directors during liquidation in Haywards Heath?
Directors must cooperate fully with the liquidator, provide all company records, accounts, and financial information, and disclose any transactions that occurred within the past two years that could be considered preferences or transactions at undervalue. Failure to comply can lead to personal liability, disqualification, or even criminal prosecution. Our team will guide you through these duties, ensuring you meet all statutory requirements and protect your position.
How long does the liquidation process take in Haywards Heath?
A Creditors' Voluntary Liquidation typically takes between 6 to 12 months to complete, depending on the complexity of asset realisation and creditor claims. An MVL can be completed in as little as 6 to 8 weeks if the company's affairs are straightforward. Our liquidators in Haywards Heath aim to expedite the process while ensuring all legal requirements are met, providing regular updates to directors and creditors.
What happens to employees when a company is liquidated in Haywards Heath?
In a CVL, all employees are made redundant from the date of liquidation. The liquidator will assist employees in claiming statutory redundancy pay, unpaid wages, holiday pay, and other entitlements from the National Insurance Fund. We will provide clear information to your staff and handle the necessary claims. In an MVL, employees are typically transferred or paid off before the liquidation, as the company is solvent.
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