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Frequently asked questions
What are the signs that my company in High Pittington should consider liquidation?
Key signs include consistent cash flow problems, inability to pay debts as they fall due, statutory demands or winding-up petitions from creditors, HMRC enforcement actions, and directors having to use personal funds to cover business expenses. If you are trading insolvently, seeking professional advice early is crucial.
How much do company liquidators in High Pittington charge?
Fees vary depending on the complexity of the liquidation, the size of the company, and the number of creditors. For a Creditors Voluntary Liquidation, typical fees range from £3,000 to £6,000 plus VAT, but many firms offer a fixed fee. Always request a detailed quote upfront to avoid hidden costs.
Can I continue trading after appointing a liquidator?
No. Once a liquidator is appointed, they take control of the company's assets and affairs. Directors lose their powers to trade or make decisions. However, before liquidation, we can explore alternative rescue options if you wish to continue the business.
What is the difference between Creditors Voluntary Liquidation (CVL) and Compulsory Liquidation?
A CVL is initiated by the directors and shareholders when the company is insolvent, and it is a voluntary process. Compulsory liquidation is forced by a creditor through a court winding-up order. A CVL gives directors more control and often results in better outcomes for creditors.
Will I be personally liable for company debts after liquidation in High Pittington?
Generally, no, if you have not provided personal guarantees and have acted within the law. However, if wrongful trading, fraudulent trading, or misfeasance is found, directors can be held personally liable. Our advisors help you avoid such risks by ensuring proper conduct.
How long does the liquidation process take in High Pittington?
A Creditors Voluntary Liquidation typically completes within 6 to 12 months, but the process can extend if there are complex asset realisations or legal disputes. The liquidator must file final accounts and notify Companies House for dissolution, which usually occurs after a year.
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