If you add up the wasted advertising expenditure, it becomes clear that ending the company is more costly than expected.For this reason a CVL should be considered as a last resort, only after alternative options that would allow the company to continue trading have been examined (i.e.A creditors’ voluntary liquidation takes place when the directors purposefully choose to liquidate the company.Although liquidating voluntarily offers a number of advantages, it is important that you also consider the following disadvantages of both forms of liquidation: Liquidating your company voluntarily is more expensive for the directors initially (as they might be asked for a fee) rather than waiting for a creditor or HMRC to force the company into compulsory liquidation.For further information on some of the options available, click on the side panels.Liquidation is a formal insolvency procedure in which a company is brought to an end; all of its assets are liquidated and the proceeds from the sale of assets is used to repay creditors.Our estate sale company will come into your home to clean, sort, stage, appraise, price, market, and sell your entire content in just one week.
We can also assess your situation and recommend an alternative course of action if you’re interested in keeping the company in business.
There are two main types of liquidations for insolvent companies– compulsory liquidation and creditor’s voluntary liquidation (CVL).
In a compulsory liquidation the company is wound up by one of its creditors or HMRC after failing to pay a debt of more than £750.
In a voluntary liquidation, these expenses, along with the cost of appointing an insolvency practitioner, are all covered by the directors.
The up front cost of a typical CVL usually ranges from £3000 to £7000, depending on the insolvency practitioner’s rates and the amount of work involved.