Phoenix Company Advice in Cumbria

At Fast Insolvency, we provide clear, compliant guidance on forming a phoenix company in Cumbria, a new business that rises from the closure of an insolvent company.

This route allows directors to start fresh, retain viable parts of the old business, and protect jobs, but strict rules apply under UK insolvency law in Cumbria.

We protect directors from liability while helping you start fresh with a viable new business in Cumbria.

Contact us today in Cumbria for free advice on phoenix company formation and to avoid the legal risks of getting it wrong.

What Is a Phoenix Company in Cumbria?

A phoenix company is a new business that is formed after an insolvent company has been liquidated in Cumbria.

It often has the same directors, staff, and assets, but operates as a legally separate entity with a different name or structure in Cumbria.

Is It Legal to Start a Phoenix Company in Cumbria?

Yes, forming a phoenix company is legal in the UK in Cumbria, as long as it follows the rules under the Insolvency Act 1986.

The process must be transparent, and directors must not trade while insolvent or breach restrictions on using the old company name in Cumbria.

What Are the Legal Restrictions in Cumbria?

Under Section 216 of the Insolvency Act 1986 in Cumbria, directors of an insolvent company are prohibited from reusing the same or similar name for 5 years, unless they follow strict exemption procedures.

Breaching this rule can result in personal liability in Cumbria for the new company’s debts and even criminal penalties.

How Can I Reuse the Company Name Legally in Cumbria?

You can apply for a Section 216 exemption in Cumbria if:

• You buy the old company’s assets from a licensed insolvency practitioner in Cumbria

• You notify all creditors and file the correct forms with the court and Companies House within 28 days in Cumbria

We can handle this entire process for you to ensure compliance in Cumbria.

Can I Keep My Staff and Clients in Cumbria?

A phoenix company in Cumbria can often retain key contracts, client relationships, and employees from the old business.

Transferring staff must follow TUPE regulations in Cumbria to protect employment rights.

Will Creditors Be Notified in Cumbria?

All creditors of the liquidated company must be notified if the new company is using a similar name or operating in a similar way in Cumbria.

This ensures transparency and protects creditors from deception in Cumbria.

Can I Buy the Assets from the Old Company in Cumbria?

The assets in Cumbria including stock, equipment, or intellectual property, can be sold to the new company at fair market value by the liquidator.

You cannot transfer assets privately or below market value in Cumbria.

What Are the Risks of Forming a Phoenix Company in Cumbria?

If the rules are not followed correctly, you could be held personally liable for new company debts or be disqualified as a director in Cumbria.

There may also be reputational damage in Cumbria if the new company appears to evade the old one’s obligations.

What Is the Process for Creating a Phoenix Company in Cumbria?

The typical process in Cumbria includes:

1. Entering a formal liquidation (CVL) in Cumbria

2. Valuing and selling the old company’s assets in Cumbria

3. Setting up a new company in Cumbria

4. Transferring staff and operations in Cumbria

5. Filing all legal notices and exemption forms under Section 216 in Cumbria

We manage this process end-to-end to ensure full compliance in Cumbria.

Does HMRC Allow Phoenix Companies in Cumbria?

HMRC permits in Cumbria the formation of phoenix companies, but they monitor closely for misuse.

You must remain fully compliant in Cumbria with tax obligations in the new business.

Can I Form a Phoenix Company After Compulsory Liquidation in Cumbria?

If your company was forcibly wound up in Cumbria through compulsory liquidation, you must still follow the same name reuse restrictions and apply for court permission.

In some cases, HMRC or other creditors may object in Cumbria.

What If I Want to Use a Completely New Name in Cumbria?

If the new company name is not the same or similar in Cumbria, Section 216 restrictions do not apply.

However, you still need to ensure that no misleading links exist in Cumbria between the old and new businesses.

How Much Does It Cost to Set Up a Phoenix Company in Cumbria?

A CVL in Cumbria costs from £3,000–£5,000 in Cumbria, plus legal fees for name reuse applications if needed.

The cost in Cumbria depends on whether you’re purchasing assets and the complexity of the liquidation.

We offer fixed-fee packages in Cumbria that include full phoenix company advice and compliance.

Get Expert Phoenix Company Advice Today in Cumbria

If you're closing an insolvent company in Cumbria and want to continue trading, legal guidance is essential.

We offer low-cost, legally compliant phoenix company services in Cumbria with expert oversight.

Contact Fast Insolvency now for free, confidential advice on forming a phoenix company safely and lawfully in Cumbria.

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