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Frequently asked questions
What are the main types of company liquidation available in Hoveton?
In Hoveton, the main types are Creditors' Voluntary Liquidation (CVL) for insolvent companies, Members' Voluntary Liquidation (MVL) for solvent companies, and Compulsory Liquidation which is court-ordered. A licensed insolvency practitioner will recommend the right one based on your financial position.
How much does it cost to appoint a company liquidator in Hoveton?
Costs vary depending on the complexity of the liquidation, asset values, and creditor numbers. For a CVL, fees typically range from £3,000 to £7,000 plus VAT, but we always provide a fixed fee quote before you commit. MVL costs are often lower due to simpler processes.
Can a director of a Hoveton company be held personally liable for company debts?
Directors can be personally liable if they trade while insolvent (wrongful trading), misuse company funds, or give preferential treatment to certain creditors. Our liquidators help you avoid these pitfalls by advising on proper conduct and documenting decisions.
How long does the liquidation process take in Hoveton?
A CVL typically takes 6 to 12 months to complete, depending on asset realisation and creditor claims. An MVL can be completed in as little as 3 to 6 months. Our team works efficiently to close your company promptly while ensuring full legal compliance.
What happens to employees during a company liquidation in Hoveton?
Employees are made redundant when liquidation begins. They may claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund (via the Redundancy Payments Service). Our liquidators guide you through employee notifications and claims.
Can I close a solvent company in Hoveton with a Members' Voluntary Liquidation?
Yes, if your company is solvent and directors sign a Declaration of Solvency, you can use an MVL. This is tax-efficient for extracting retained profits and closing down. Our licensed liquidators handle the process, including distributing assets to shareholders.
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