Creditors’ Voluntary Liquidation (CVL)
Creditors’ Voluntary Liquidation is a liquidation process for insolvent companies that’s initiated by the company directors or shareholders. Unsure if you’re insolvent? If you can’t pay your creditors in full and when their payments are due, your company could be in an insolvent position. You can take our cash flow and balance sheet tests to determine your financial standing.
One of our licensed insolvency practitioners and business rescue experts can help you confirm your company’s financial situation. We can also find the best insolvency solutions for your business’ future. Whether you decide to close your company and walk away, or use liquidation as a solution to restart your business, a Creditors’ Voluntary Liquidation could work for you.
What is Creditors’ Voluntary Liquidation?
Creditors’ Voluntary Liquidation is an efficient option for voluntary company closure, when your company is insolvent. If you’re looking to close a solvent company (a company that’s in a good financial position) then Members’ Voluntary Liquidation is what you’re looking for. You can find out more about it here.
Creditors’ Voluntary Liquidation is a formal tool which legally requires the involvement of a licensed insolvency practitioner. Our role as liquidator has various stages. When you initially appoint us, we’ll handle all the official meetings and make sure that we get approval of the liquidation before we go any further.
If there are any funds in the company to distribute to creditors then we’ll do this too. We’ll also arrange for the sale of any assets you have, to cover some or all of your debts to creditors.
As part of the Creditors’ Voluntary Liquidation process, we have a duty to investigate the conduct of your directors. This is to check there’s been no wrongful trading which in turn has caused the insolvency of the company. If something is found during these investigations we are legally obliged to report it to R3 who will decide if any action should be taken.
The result of a Creditors’ Voluntary Liquidation is your company’s striking off the Companies House register and a notification of its liquidation being placed in The Gazette. We’ll handle both these obligations for you.
Start Afresh Liquidation
In some cases, we can use a liquidation as a solution to close your company but save your business. We call this a Start Afresh Liquidation.
The difference between Start Afresh Liquidation and another business rescue solutions like company administration is that company administration aims to use your assets to pay back creditors and save your company. Start Afresh Liquidation aims to liquidate your assets, shed debts and close your company.
If we manage this liquidation in a specific way, we’re able to restart your business under a new company. Your company name, directors and shareholders can all remain the same. But your historic debts will be gone and you’ll be free to create a more successful future for your business.
This liquidation process is governed by strict laws, which you read more about here. Our licensed insolvency practitioners and business rescue experts can let you know if Start Afresh Liquidation could be an option for you.
As you can hopefully see, we can use the Creditors’ Voluntary Liquidation process to dissolve your company in the most efficient and effective way possible, for you and your creditors. We might even be able to use liquidation to save your business. As licensed insolvency practitioners, we can give you expert advice on your current challenges, the possible solutions, and guide you through every step of your Creditors’ Voluntary Liquidation.
Explore our other services