Creditors’ Voluntary Liquidation or CVL
If your company is unable to pay its debts – either now or in the future – it’s seen as being insolvent. We use a formal process like a Creditors’ Voluntary Liquidation – CVL – to remove the stress from our clients by taking charge of the situation and managing the liquidation.
It’s unlawful to trade while knowingly insolvent and can sometimes end in the business owner being held responsible for the company’s debts. But if you act quickly we can often prevent this.
What’s a Creditors’ Voluntary Liquidation or CVL?
Creditors’ Voluntary Liquidation – CVL – is the most common way of liquidating an insolvent company. It’s a formal process and so needs to be overseen by a licensed insolvency practitioner acting as a liquidator. This expert will take control of the company as it goes through liquidation.
What happens in a Creditors’ Voluntary Liquidation or CVL?
We recommend that you appoint a licensed insolvency practitioner as soon as possible, to help you decide on the best solution for your business and to guide you through the right steps to take before, during and after any formal liquidation process.
The first step of a Creditors’ Voluntary Liquidation (CVL) is to get shareholder approval of the liquidation. As our client, we’ll organise the shareholders’ meeting for you and make sure it’s carried out correctly.
As well as handling all the meetings and paperwork, we organise for the sale of any company assets and use this money to pay back your creditors as much as possible. If there are funds leftover, we pay these to you or the shareholders.
What happens after liquidation?
Liquidating your business might be the fresh start you need to begin again. You’re not disbarred from setting up other businesses after liquidation. This could be your opportunity to build a more successful future. We can advise you on what to do next.
Speak to one of our licensed insolvency practitioners to find out if a Creditors’ Voluntary Liquidation – CVL – could be the right solution for your company.