- Review the position. We discuss debts, assets, employees, cashflow and any urgent creditor action. Tell us about personal guarantees, money owed by directors and proposed asset sales.
- Agree the work and costs. If a CVL is appropriate, we explain the proposed steps, information required and fee basis before you instruct us.
- Complete the formal decisions. Shareholders consider the winding-up resolution and creditors are notified through the applicable procedure. A liquidator is appointed.
- Deal with the liquidation. The liquidator realises assets, deals with claims and distributions, and reviews the company’s affairs and directors’ conduct. Directors must provide information and cooperate.
Creditors voluntary liquidation in England and Wales
A creditors’ voluntary liquidation, or CVL, is a formal way to close an insolvent company. Directors initiate the process, shareholders pass the winding-up resolution and a licensed insolvency practitioner takes responsibility for the liquidation. Creditors have a say in the choice of liquidator.
BusinessRescueExpert helps directors understand whether liquidation is appropriate, what it could cost and what it means for them. We will review the company’s position and explain the available options before you decide how to proceed.
When a CVL may be appropriate
A CVL may be appropriate when the company cannot pay its debts and there is no realistic route to recovery. HMRC arrears, unpaid suppliers and persistent cashflow problems are reasons to review the position promptly. They do not, on their own, establish which procedure is right.
If the business could recover, we can assess alternatives such as a company voluntary arrangement or administration. A solvent company that can pay its debts needs a different assessment and may be suitable for a members’ voluntary liquidation.
How a CVL works
How long it takes
Entering liquidation and completing a liquidation are different stages. The time to appointment depends on the records available, notice requirements and the company’s circumstances. The work after appointment can take much longer, particularly where there are assets to sell, disputes or investigations. We will explain the likely timetable for your case.
What a CVL costs
Costs depend on the work required, including the company’s assets, creditor position, employees and records. Ask for a written quotation that explains the work included, VAT, disbursements and any additional charges. We will discuss how the costs could be funded before you commit.
HMRC debt and limited funds
HMRC debt can be dealt with through an insolvency process. We first assess whether the company can recover and whether a repayment arrangement is realistic. Read our guide to liquidation with HMRC tax debt.
Lack of cash does not mean a CVL will be free or that striking off is appropriate. The funding position needs to be reviewed alongside the company’s assets and liabilities. Read our guide to liquidation costs when money is short.
Speak to BusinessRescueExpert
Arrange an initial conversation about your company’s position. Bring any creditor deadlines to our attention when you contact us. Speak to the team or call 0333 939 80 40.
For Scottish company liquidation, visit Lennox Insolvency.
Common questions about liquidation
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