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Frequently asked questions
What is the difference between a Creditors Voluntary Liquidation (CVL) and a Members Voluntary Liquidation (MVL)?
A CVL is used for insolvent companies where the company cannot pay its debts. An MVL is for solvent companies where the directors wish to close the business and distribute assets to shareholders. In an MVL, a declaration of solvency is required, and the process is typically more straightforward and tax-efficient.
How long does the liquidation process take in Hook?
The timeline varies depending on the complexity of the company's affairs. A simple MVL can be completed in 6-12 months, while a CVL may take longer if there are complex asset realizations or legal issues. Our team provides a clear timeline during the initial consultation and works to expedite the process wherever possible.
Can I continue to trade while my company is being liquidated?
Once a liquidation order is made, directors' powers cease, and the liquidator takes control. However, in some cases, a pre-liquidation period may allow trading to continue under strict supervision to maximize asset value. It is crucial to seek professional advice before making any decisions to avoid wrongful trading claims.
What are the costs involved in hiring a company liquidator in Hook?
Costs vary based on the size and complexity of the company. For CVLs, fees are often based on the realization of assets and can be paid from the company's funds. For MVLs, fixed fees are common. We provide transparent, upfront quotes with no hidden charges, ensuring you know exactly what to expect.
Will I be personally liable for company debts after liquidation?
In most cases, no. Once a company is liquidated, it is legally dissolved, and directors are not personally liable for company debts, provided they have acted lawfully and not engaged in fraudulent or wrongful trading. However, personal guarantees given to creditors may still be enforced, so it is important to discuss these with us.
Can I liquidate a company that has no assets or is already struck off?
Yes, we can assist with compulsory strike-off or voluntary dissolution if the company has no assets and no debts. If the company has already been struck off but has assets or debts, we can help apply for restoration and then proceed with the appropriate liquidation route.
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