Frequently Asked Questions

If a company is insolvent, a Creditors Voluntary Liquidation is a way of closing it. Directors themselves begin the process of Liquidation of the Company.

If a company is insolvent and has not got enough money to pay all the debts, sometimes the only course of action is to liquidate the company.

A CVL is one of the most common way for directors and shareholders to deal voluntarily with the insolvency of their company.

A CVL is usually begun by directors agreeing to convene meetings of shareholders and creditors to discuss placing the company into liquidation.

Once the course of action has been agreed the directors will then appoint a liquidator (insolvency practitioner) to deal with the CVL.

Once appointed by members and creditors, the liquidator has three main functions:-

• To realise the assets of the company
• To agree the claims of creditors of the company
• To investigate the affairs of the company and the directors conduct.

We would advise a Creditors Voluntary Liquidation is appropriate when:-

• The company is insolvent
• The company does not appear to be viable, even if the restructuring
• The company has assets or funds that need to be sold to repay creditors
• The company has employees who are entitled to redundancy

A Creditors Voluntary Liquidation costs from around £5,000+VAT

If you think you might need a Creditors Voluntary Liquidation please get in touch with us today on 0800 975 0380.

Read Quick Guide To The Liquidation Process