Creditors’ Voluntary Liquidation
Stay in control – liquidate voluntarily before being forced by creditors.
What is a CVL?
A Creditors’ Voluntary Liquidation is the formal insolvency process where an insolvent company is closed down by its directors rather than by a court order.
If you have been experiencing pressure from creditors, such as bailiff action or a winding-up petition, you can still put the company into voluntary liquidation.
Advantages Of Voluntary Liquidation
Keep more control - close your company on your terms
Formal Closure and a Fresh Start
A CVL offers a structured legal framework for winding up a company, ensuring compliance with statutory regulations. It provides closure, allowing directors to move forward and explore new opportunities.
Fast Debt Resolution
It helps resolve outstanding debts by distributing available assets among creditors, providing clarity and finality to debt obligations. Leases and contracts are canceled, and obligations are discharged.
Releases the Pressure
HMRC, with unique enforcement powers, can pursue unpaid taxes without a court order. Bailiffs can seize assets—such as equipment, vehicles, and inventory. A CVL helps prevent this unpleasant situation.
Creditor Relations
By engaging with creditors in a structured manner, a CVL demonstrates a responsible approach to resolving insolvency. This can improve creditor relationships compared to an abrupt closure.
Avoids Compulsory Liquidation
When a winding-up petition progresses to a winding-up order, compulsory liquidation follows. A liquidator—chosen by the court—is appointed, leaving directors with little control over the process. This situation is best avoided.
Director Protection
By acting decisively and initiating the CVL process, directors can minimize personal liability. It demonstrates to creditors that they have taken responsible action by seeking professional advice and helps mitigate the risks associated with wrongful trading.
Expert Guidance
The process is overseen by one of our insolvency practitioners, with the team providing professional support to manage creditors, distribute assets, ensure legal compliance, and ultimately remove the company from the registers at Companies House.
Directors Redundancy Payments
When entering a CVL, payments for outstanding wages and redundancy may be available from the National Insurance Fund. Calculate Statutory Redundancy payments here.
Get Started Today
Simple 3 Step Business Liquidation Process
Consultation & Assessment
Book a free consultation with our experts to review your business's financial situation and determine the most appropriate liquidation method.
Liquidation Procedure
We manage the entire process, including creditor communication, asset valuation, and statutory requirements, ensuring compliance with UK regulations.
Closure & Debt Resolution
The company is dissolved and struck-off the Companies House registrar. The liquidation will come to an end and the company’s debts will cease to exist.
