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Free Liquidation Advice Service – Call 0800 066 2280

Free Liquidation Advice Service – Call 0800 066 2280

Creditors’ Voluntary Liquidation

Creditors’ Voluntary Liquidation (CVL) also known as voluntary winding up is the most common process used to close an insolvent company, with the directors voluntarily liquidating the company. The assets or business are then sold on by the liquidator. Our insolvency Practitioners can act as Liquidator and the procedure can be commenced within as little as a couple of days.

We work with you to set up the liquidation, and the liquidator then deals with all matters including communication with creditors, meetings, company assets, creditor’s claims, paying out funds to creditors, and other statutory requirements, to close down your company.

Directors will typically opt to liquidate their company if the company is insolvent. There are 2 simple tests to establish whether or not your company is insolvent…

… Then a low cost liquidation may be your solution! Contact us as soon as possible on 0800 066 2280 to start the process which is detailed below.

Test 1 – Balance Sheet Test

This is when the company’s liabilities exceed the value its assets.

Test 2 – Cash Flow Test

This is when the company cannot pay its debts as and when they fall due.

If either of these apply to your company then please contact us immediately for some free advice as continuing to trade under either of these two circumstances could result in you being prosecuted for Wrongful Trading and could see you become personally liable for the debts.

The CVL Process

Creditors’ Voluntary Liquidation is started by the directors who tell the shareholders the company is not viable, it is insolvent and that it must stop trading. The directors then ask a licensed insolvency practitioner to set a decision date for shareholders and creditors to place the company into liquidation as soon as possible. On this decision date the creditors vote to appoint a liquidator.

CVL is a very common, quick and powerful way to close a business and deal with things properly. You can get on with a new business or job. The company is closed, leases cancelled and all the staff made redundant.

Once the liquidator has been appointed he or she runs the liquidation and realises all assets if any, for the benefit of the company’s creditors.

As soon as a liquidator has been appointed, the Directors’ duties and obligations in respect of the company are effectively taken on by the Liquidator. The Directors are then in a position to make a fresh start, in the same line of business with a new Company, or they can exit the market and move onto new opportunities.

Once the liquidation is complete, the company is dissolved, struck off the register at Companies House, and ceases to exist.

Are you thinking to yourself “I need to liquidate?”, then contact us Now for free professional advice on 0800 066 2280

About

Voluntary Liquidation, also known as winding up a company, refers to the process by which a company is brought to an end, allowing the director(s) to set up a new company without any debt and any hassle.

Talk to Peter

peter-anderson
Peter Anderson Licensed Insolvency Pratitioner
Peter heads up the initial advice team at Liquidation Made Easy and specialises in providing solutions to help directors of businesses when they need it most.

Speak to Peter now on 0800 066 2280

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Services

  • Creditors Voluntary Liquidation (CVL)
  • Members Voluntary Liquidation (MVL)
  • Company Voluntary Arrangement (CVA)
  • Administration
  • Compulsory Liquidation

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