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Frequently asked questions
What is a company liquidator in Stockton-on-Tees?
A company liquidator is a licensed insolvency practitioner who manages the closure of an insolvent company. In Stockton-on-Tees, they handle the sale of assets, distribution of funds to creditors, and formal dissolution of the company. They also investigate director conduct and ensure legal compliance throughout the process.
How much does company liquidation cost in Stockton-on-Tees?
The cost of liquidation varies depending on the complexity of the company's affairs, the number of creditors, and the value of assets. Most liquidators in Stockton-on-Tees offer fixed-fee arrangements for straightforward CVLs, typically ranging from £4,000 to £8,000 plus VAT. Always request a detailed quote before proceeding.
Can I continue trading after my company enters liquidation?
No, once a company enters liquidation, the liquidator takes control of the business. You cannot trade or make payments without the liquidator's approval. However, in some cases, the liquidator may allow the company to continue trading briefly to complete existing contracts or sell assets as a going concern.
What is the difference between a CVL and compulsory liquidation?
A creditors' voluntary liquidation (CVL) is initiated by directors when the company is insolvent. It is a voluntary process that requires a shareholder resolution. Compulsory liquidation is a court-ordered process, usually triggered by a creditor's petition. CVL is generally faster and gives directors more control over the appointment of the liquidator.
Will I be personally liable for company debts after liquidation?
Generally, no, if you have acted lawfully and not given personal guarantees. However, if you have been involved in wrongful trading, fraudulent activity, or misappropriation of assets, you could be held personally liable. A liquidator will investigate your conduct, so seeking professional advice early is crucial to avoid such risks.
How long does the liquidation process take in Stockton-on-Tees?
A straightforward CVL can be completed in 6 to 12 months, depending on the complexity of the asset realisation and creditor claims. Compulsory liquidation may take longer. Your liquidator will provide a timeline after assessing your company's specific situation.
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