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Creditors Voluntary Liquidation

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Compulsary Liquidation
Creditors Voluntary Liquidation
Members Voluntary Liquidation

Typical Referral fee £875

Creditors' Voluntary Liquidation "CVL" is the process where the directors of an insolvent company can voluntarily take steps to wind up the company. The directors call meetings of the company's shareholders and creditors to consider resolutions to wind up the company and to appoint a liquidator.

CVL - Key Features

When a company is insolvent and no longer has a viable business worth saving. For example:
A company which has insufficient sales to cover its overheads and cannot continue to trade.

Insolvent, what does this mean?

S123 IA86 sets out the definition of insolvency which includes:- Creditor(s) are owed more than L750 and have either served a 21 day demand which has not been met or judgment has been given or it is proved to the satisfaction of the Court that the company cannot pay its debts as they fall due, or the company's liabilities exceed its assets including contingent liabilities.