Creditors Voluntary Liquidation

What is a Creditors Voluntary Liquidation (CVL)?

A Creditors Voluntary Liquidation is the most common form of insolvency in the UK.

This happens if you and your fellow directors decide that, with your company insolvent, you should voluntarily wind it up. A CVL works by realising the assets of your company and distributing the proceeds to your creditors. 

How do we approach our role?

• We begin by advising you of your options  - specifically whether or not a CVL might be appropriate.
• We help the directors convene a shareholders’ meeting and a decision process for creditors.
• We help the directors to prepare their report and statement of affairs.
• We then act as liquidators.  In other words, we control your company and its assets, whilst relieving you and your fellow directors of their duties.
• We realise the company’s assets.  This usually means selling them off.
• We distribute to the creditors the funds raised, first deducting our own costs and expenses.
• Each year, until the liquidation is complete, we prepare a report on its progress.
• Finally, we submit to the creditors a final account and report. 

 There is a more complete discussion of what a CVL means and the process around it here