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John Lavender accounting ltd
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MAKESWORTH LIMITED
Makesworth
Accountants is an award-winning accountancy practice of Chartered
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Taxeasy Ltd
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EXPEDIENT ACCOUNTANCY
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Frequently asked questions
What are the signs that my company in Redbourn might need liquidation?
Key signs include persistent cash flow problems, inability to pay debts as they fall due, legal actions from creditors such as statutory demands or winding-up petitions, and a continuous decline in profitability. If you are considering closing your business and have significant debts, liquidation may be the appropriate solution. Our advisors can help you assess your company's financial health and recommend the best course of action.
What is the difference between a Creditors' Voluntary Liquidation (CVL) and a Members' Voluntary Liquidation (MVL)?
A CVL is used when a company is insolvent and cannot pay its debts. The directors voluntarily place the company into liquidation to protect it from further creditor action. An MVL is used when a company is solvent and directors wish to close it down, often for retirement or restructuring purposes. MVLs can offer tax advantages for shareholders. Our team can explain which option applies to your situation.
How much does company liquidation cost in Redbourn?
The cost of liquidation varies depending on the complexity of your company's affairs, the number of creditors, and the amount of assets to be realised. Typically, fees range from £3,000 to £6,000 for a straightforward CVL, but we always provide a fixed fee quote before any work begins. For an MVL, costs are often higher due to the need for a full asset distribution. Contact us for a tailored quote.
Will I be personally liable for my company's debts if it goes into liquidation?
Generally, no. Limited liability protects directors from personal responsibility for company debts. However, personal liability can arise if you have given personal guarantees, engaged in wrongful trading, or acted fraudulently. Our liquidation experts can review your conduct and advise on any potential risks. We aim to ensure you are fully protected and compliant with insolvency laws.
Can I continue to trade while my company is being liquidated in Redbourn?
Once a liquidation order is made or a CVL is approved, directors' powers cease, and the liquidator takes control. You cannot continue trading in the company's name except for the purpose of winding down operations under the liquidator's supervision. Attempting to trade after liquidation can lead to personal liability. Our team will guide you on the correct procedures to follow.
How long does the liquidation process take for a company in Redbourn?
A Creditors' Voluntary Liquidation typically takes between 6 to 12 months to complete, depending on the complexity of asset realisation and creditor claims. A Members' Voluntary Liquidation can be completed more quickly, often within 3 to 6 months. Compulsory liquidation timelines vary based on court proceedings. We provide a clear timeline during your initial consultation.
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