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Frequently asked questions
What is the difference between solvent and insolvent liquidation?
Solvent liquidation, known as Members' Voluntary Liquidation (MVL), is used when a company is financially healthy and directors wish to close it, often for tax efficiency. Insolvent liquidation, such as Creditors' Voluntary Liquidation (CVL), occurs when the company cannot pay its debts and is closed to protect creditors. Our liquidators in Weybridge will assess your company's financial position and recommend the appropriate procedure.
How much do company liquidators in Weybridge charge?
Fees vary depending on the complexity of the liquidation and the size of the company. For a Creditors' Voluntary Liquidation, typical fees range from £3,000 to £6,000 plus VAT, while Members' Voluntary Liquidations may cost between £1,500 and £3,000. We provide a fixed-fee quote after an initial free consultation, ensuring no hidden costs.
How long does the liquidation process take in Weybridge?
The duration depends on the type of liquidation and the company's affairs. A solvent MVL can often be completed within 6 to 9 months, while a CVL may take 12 to 18 months to conclude, depending on asset realisation and creditor claims. Our team works efficiently to expedite the process while ensuring legal compliance.
Can I liquidate a company without a liquidator?
No, a licensed insolvency practitioner must be appointed to handle the liquidation process. They are responsible for realising assets, investigating the company's affairs, distributing funds to creditors, and ensuring statutory obligations are met. Attempting to close a company informally can lead to legal penalties and personal liability for directors.
What happens to employees during a company liquidation?
Employees are made redundant when a company enters liquidation. The liquidator will provide guidance on employee rights, including redundancy pay, notice periods, and claims to the Redundancy Payments Service. We ensure all statutory employee claims are processed correctly and in a timely manner.
Can directors be held personally liable for company debts?
In most cases, directors are not personally liable for company debts as limited liability protects them. However, if wrongful trading, fraudulent activity, or personal guarantees are involved, directors may face personal liability. Our liquidators will review the company's history and advise on any potential risks during your free consultation.
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