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Frequently asked questions
What is the difference between a Creditors Voluntary Liquidation (CVL) and a Members Voluntary Liquidation (MVL) in North Harrow?
A CVL is used for insolvent companies where the directors cannot pay debts, and it protects the company from creditor action. An MVL is for solvent companies where directors want to close voluntarily, often for tax efficiency. Our North Harrow liquidators will assess your financial position to recommend the correct procedure.
How much do company liquidators in North Harrow charge for their services?
Fees vary based on the complexity of the liquidation, the size of the company, and the number of assets and creditors. We provide fixed-fee quotes before starting any work, ensuring there are no hidden costs. For a precise estimate, we recommend a free initial consultation with our North Harrow team.
Can I continue trading my business while undergoing liquidation in North Harrow?
Once a liquidation order is made, the liquidator takes control of the company, and directors cannot continue trading. However, prior to the formal process, you may trade under the guidance of an insolvency practitioner to preserve value. Our experts will advise on the legal boundaries to avoid wrongful trading.
What happens to employees when a company goes into liquidation in North Harrow?
Employees are automatically made redundant when a company enters liquidation. The liquidator is responsible for ensuring they receive their statutory entitlements, including unpaid wages, holiday pay, and redundancy pay, which may be claimed from the National Insurance Fund if company assets are insufficient.
How long does the liquidation process take for a company in North Harrow?
A straightforward CVL typically takes between 6 to 12 months to complete, depending on the complexity of the asset realisation and creditor claims. An MVL can often be completed faster, sometimes within 3 to 6 months. Our liquidators work efficiently to close the process as quickly as possible.
What are the legal obligations of directors during a liquidation in North Harrow?
Directors must cooperate fully with the liquidator, providing all company records, financial statements, and information about assets and liabilities. They must not hide assets or prefer certain creditors. Failure to comply can lead to personal liability, disqualification, or even criminal prosecution. Our team guides you through every legal requirement.
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