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Frequently asked questions
What is the difference between a CVL and an MVL in West Molesey?
A Creditors Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts. It is initiated by directors and involves a licensed insolvency practitioner who sells assets and distributes proceeds to creditors. A Members Voluntary Liquidation (MVL) is for solvent companies that wish to close, often for tax efficiency, and requires a declaration of solvency from directors. Our West Molesey liquidators assess your financial situation and recommend the correct procedure.
How much does it cost to appoint a company liquidator in West Molesey?
Costs vary based on the complexity of your case, the size of the company, and the number of creditors. For a CVL, fees are often based on a percentage of asset realisations or an agreed fixed fee, typically ranging from £3,000 to £8,000 plus VAT. For an MVL, costs are lower, often between £1,500 and £3,000. We provide a detailed quote after a free consultation, with no hidden charges.
Can I continue trading after filing for liquidation in West Molesey?
Once a winding-up order is made or a CVL is approved, trading must cease immediately, except for actions necessary to preserve asset value or complete contracts. Your liquidator takes control of the company and its assets. If you wish to continue a business, you may consider buying back assets or starting a new venture, but this requires careful handling to avoid wrongful trading claims.
What happens to employees when a company is liquidated in West Molesey?
Employees are automatically dismissed upon liquidation, but they may be entitled to claim redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund via the Redundancy Payments Service. Our liquidators provide employees with the necessary forms and guidance, and we ensure all statutory priorities are met in distributing any available assets.
Are directors personally liable for company debts in West Molesey?
Generally, no, as limited liability protects directors from personal responsibility for company debts. However, personal liability can arise if you have given personal guarantees, engaged in fraudulent or wrongful trading, or misused company funds. Our West Molesey liquidators review your conduct to identify any potential risks and advise on how to minimise exposure before liquidation.
How long does a company liquidation take in West Molesey?
A CVL typically takes between 6 and 12 months to complete, depending on the complexity of asset sales and creditor claims. An MVL can be completed in as little as 3 to 6 months. The process includes a creditors' meeting, asset realisation, claim adjudication, and final dissolution. We keep you informed at every stage and aim to close cases efficiently.
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