Creditors Voluntary Liquidation (CVL)
What is a CVL?
A Creditors Voluntary Liquidation or CVL is the procedure used to bring the company to an end by appointing a Liquidator who must be an authorised Insolvency Practitioner. It is instigated by the company when the directors become aware that the company cannot pay its debts when they fall due, rendering it insolvent The Company ceases to trade, the assets are sold and the proceeds are then distributed to the company’s creditors. The Insolvency Practitioner ensures that the creditors’ best interests are considered. At the end of the Liquidation, the company is dissolved.
Advantages
- Relatively quick way of closing down your business
- Outstanding debts are written off
- Legal action is halted
- Staff can claim redundancy pay
- Relatively low costs involved
- Avoid court processes
Disadvantages
- The company will cease to trade
- Directors conduct will be investigated
- Asset values will decrease
- Any personal guarantees will be called in
What Costs Are Involved?
Generally speaking there is no cost to the director of an insolvent company. An Insolvency Practitioner takes his/her fees from the sale of the company assets and the remaining funds a distributed to creditors. However if a company does not have enough assets to cover the fees of the liquidator then the directors may be asked for a contribution. If you would like to discover if there is a cost to your liquidation then complete our liquidation quote, alternatively you can call us today on 0800 090 3041.
How To Proceed With a Creditors Voluntary Liquidation?
If you wish to proceed with a Creditors Voluntary Liquidation or simply need more advice about your situation then we would love to talk to you. We are a national firm of Insolvency Practitioners with over 20 years in dealing with insolvent businesses. Call us in confidence on 0800 090 3041 for more information.
Call today for FREE advice on 0800 090 3041
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WE CAN HELP
Licensed Practice
We are licensed and regulated by the Insolvency Practitioners Association.
We Operate Nationwide
We have offices across the United Kingdom, including Northern Ireland.
Responsive Solutions
Our team of professionals are qualified and experienced in all aspects of insolvency.
Available 24/7
We are on hand 24/7 to provide help and assistance to any queries/worries you have.
ADVICE PROVIDED BY PROFESSIONALS WHO CARE
‘Insolvency can be a daunting prospect for any Director which is why we tailor all of our advice to the individual circumstances of the company. We do not believe in a ‘One size fits all’ approach.
Regulatory Bodies
We are governed and regulated by the Insolvency Practitioners Association (IPA). Ensuring all our professionals provide the right advice.
Our Promice to You
We promise to provide you with the highest standard of advice and guidance to any Director. We will always ensure complete transparancy with all options/services we provide.
WE CAN HELP
Our dedicated and professional team can assist
you and you business with the following:
Director Advice
Transparant business advice and guidance to ALL Directors.
Redundancy Claims
Directors may be elligible to claim upto £12,500 in redundancy payments.
24/7 Support
We are on hand 24/7 to provide help and assistance.
Experience
Our team has over 2 decades of corporate insolvency experience.
Industry Partners
Our partnerships provide access to additional funding & expertise.
Unique Approach
Through excellent communication, we ensure all of our clients understand the journey every step of the way.
Call today for FREE advice on 0800 090 3041
OUR SERVICES
We provide a range of insolvency services designed to assist Directors with either rescuing or closing a Limited Company.
Company Administration/Pre-Pack
A form of company rescue, allowing a company to protect its assets while a solution is reached..
Members Voluntary Liquidation
A tax efficient method of closing a solvent (profitabe) company. Company assets are distributed amongst shareholders.
Creditors Voluntary Liquidation
A fast and efficient way of closing an insolvent (in debt) company. Company assets are sold and funds are distributed amongst creditors.
Company Voluntary Arrangement
A long term rescue agreement between the Company and its Creditors to repay a percentage of debt over time.