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Frequently asked questions
What is the difference between a CVL and an MVL in Skegness?
A Creditor Voluntary Liquidation (CVL) is used for insolvent companies where debts cannot be paid. An MVL (Members Voluntary Liquidation) is for solvent companies that want to close, usually to extract retained profits tax-efficiently. Our licensed IPs will assess your financial position and recommend the correct procedure.
How much does company liquidation cost in Skegness?
Costs vary depending on complexity, asset values, and creditor numbers. Typically, a straightforward CVL starts from around £4,000 plus VAT and disbursements. We provide fixed-fee quotes upfront with no hidden charges. For solvent MVLs, fees are often based on the value of assets distributed.
Can I continue trading after filing for liquidation?
No. Once a liquidation order is made (CVL or compulsory), the company ceases trading immediately. However, in a CVL, you can continue trading during the lead-up to the creditors' meeting if it is in the best interests of creditors to do so, but only with professional advice to avoid wrongful trading.
What are the consequences of liquidation for directors in Skegness?
Directors are not personally liable for company debts unless they have given personal guarantees or acted fraudulently. In a CVL, the process is designed to be fair. However, misconduct like trading while insolvent or hiding assets can lead to personal liability, disqualification, or in severe cases, prosecution.
How long does a company liquidation take in Skegness?
A CVL typically completes in 6 to 12 months, depending on asset realisation and creditor claims. An MVL can be faster, often 3 to 6 months. Compulsory liquidation through the courts may take longer due to court schedules. We provide a timeline after the initial assessment.
Will I be able to start a new business after liquidation?
Yes, in most cases. You can start a new company immediately after a CVL, but you cannot reuse the same or a similar name for 5 years unless you follow the 'phoenix' rules (buying assets from the liquidator with court approval). Our advisors will explain the restrictions and help you structure a fresh start legally.
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