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Frequently asked questions
What is the difference between a CVL and an MVL in Hove?
A Creditors' Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts, while a Members' Voluntary Liquidation (MVL) is for solvent companies where directors wish to close the business and distribute assets tax-efficiently. Our licensed liquidators in Hove will assess your financial position and recommend the correct procedure for your circumstances.
How much does it cost to appoint a company liquidator in Hove?
Costs vary based on the complexity of the liquidation. For a straightforward CVL, our fixed fee typically starts from £4,500 plus VAT, which covers all statutory work, creditor communication, and final dissolution. We provide a written quote after a free consultation, with no hidden charges. MVL fees are often lower and can be agreed in advance.
Can I continue trading after my company enters liquidation?
No, once a company enters compulsory or creditors' voluntary liquidation, the appointed liquidator takes control of the business. Trading must cease immediately unless the liquidator decides that continuing to trade temporarily will preserve asset value or secure a better return for creditors. We will guide you on the correct legal steps to avoid wrongful trading.
What happens to company directors' personal guarantees during liquidation?
Personal guarantees are separate from the company's debts. If you have signed a personal guarantee for a business loan or lease, the lender can pursue you personally after liquidation. Our Hove liquidators can advise on negotiating with creditors and may help you reach a settlement or payment plan, but the guarantee itself remains enforceable.
How long does a company liquidation take in Hove?
A CVL typically takes between 6 to 12 months to complete, depending on the complexity of the asset realisation and creditor claims. An MVL can be concluded in as little as 3 to 6 months. We aim to expedite the process by handling all paperwork efficiently and keeping you updated at every stage.
Will I be personally liable for company debts after liquidation?
In most cases, directors are not personally liable for company debts if they have acted in good faith and complied with their duties. However, if there is evidence of wrongful trading, fraudulent activity, or misfeasance, the liquidator may seek a contribution from directors. Our team will review your conduct and help you mitigate any risks before proceeding.
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