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Frequently asked questions
What is the difference between a Creditors Voluntary Liquidation (CVL) and a Members Voluntary Liquidation (MVL)?
A CVL is used for insolvent companies where liabilities exceed assets and the company cannot pay its debts. It is initiated by directors and involves a meeting of creditors. An MVL is for solvent companies where directors wish to close the business and distribute remaining assets to shareholders, often for tax efficiency. Our liquidators in Stratford will assess your solvency and recommend the correct procedure.
How much does company liquidation cost in Stratford?
The cost of liquidation varies depending on the complexity of the case, the size of the company, and the number of creditors. For a CVL, fees typically range from £4,000 to £8,000 plus VAT, which can be paid from company assets. We provide transparent, fixed-fee quotes after a free initial consultation, ensuring no hidden costs.
Can I continue trading after appointing a liquidator?
Once a liquidator is appointed, they take control of the company's affairs. The directors' powers cease, and trading can only continue if the liquidator decides it is necessary for the beneficial realisation of assets, such as completing existing contracts. In most cases, trading stops immediately to prevent further losses.
What happens to employees when a company goes into liquidation in Stratford?
Employees are automatically made redundant when a compulsory liquidation order is made or when a CVL resolution is passed. The liquidator will assist employees in claiming statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund. We ensure all employee claims are properly submitted and prioritised.
Are directors personally liable for company debts after liquidation?
Generally, directors are not personally liable for company debts if they have acted within the law. However, if there is evidence of wrongful trading, fraudulent trading, or misfeasance, directors can be held personally responsible. Our liquidators investigate director conduct and provide advice to help you avoid such liabilities.
How long does the liquidation process take in Stratford?
A CVL typically takes between 6 to 12 months to complete, depending on the complexity of asset realisation and creditor claims. An MVL can be completed in a shorter timeframe, often within 3 to 6 months. Our liquidators work efficiently to conclude the process as quickly as possible while complying with legal requirements.
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