FREE IMPARTIAL ADVICE
Insolvent liquidation, specifically a Creditors Voluntary Liquidation (CVL), is a process for companies that cannot repay their debts in full. This procedure involves ceasing all trading activities and liquidating the company’s assets to repay creditors. A CVL allows you to take control of the situation and initiate the process voluntarily, rather than waiting for creditors or HM Revenue & Customs to force your company into compulsory liquidation.
Insolvent liquidation, specifically a Creditors Voluntary Liquidation (CVL), is a process for companies that cannot repay their debts in full. This procedure involves ceasing all trading activities and liquidating the company’s assets to repay creditors. A CVL allows you to take control of the situation and initiate the process voluntarily, rather than waiting for creditors or HM Revenue & Customs to force your company into compulsory liquidation.
A CVL might be the right option if your company is experiencing financial distress and cannot meet its debt obligations. Here are some signs that a CVL might be necessary:
If any of these situations apply to your company, it might be time to consider a CVL.
Contact Parker Walsh for a free, no-obligation consultation to discuss your company’s financial situation. Our in-house insolvency practitioner will assess whether a CVL is the most suitable option.
If a CVL is deemed appropriate, we will arrange a directors’ meeting. During this meeting, the decision to enter liquidation will be formally proposed and documented.
A shareholders’ meeting will follow where a resolution to liquidate the company must be passed. This typically requires a 75% majority vote.
Once approved, Molly Monks, an insolvency practitioner, will be appointed as the liquidator. From this point, the liquidator will take over control of the company’s affairs, property, and assets.
The liquidator will identify and sell company assets to raise funds to repay creditors. This may involve selling property, machinery, stock, and other assets.
Proceeds from the asset sales will be distributed to creditors according to the legal priority. Unsecured creditors may only receive a portion of what they are owed, depending on the available funds.
After all assets have been realised and creditors paid, the company will be formally dissolved, and it will cease to exist as a legal entity.
At Parker Walsh, we understand that entering into a CVL is a difficult and emotional decision. Our team is dedicated to providing compassionate, professional support throughout the process. Here’s how we can help:
If your company is solvent but you still wish to cease trading, a Members Voluntary Liquidation (MVL) might be a better option.
An MVL allows you to liquidate your company’s assets and distribute the proceeds to shareholders in a tax-efficient manner. For more information on MVLs, visit our MVL page.
By choosing Parker Walsh for your CVL, you are opting for a seamless, supportive, and transparent liquidation process. Contact us today to take the first step towards resolving your company’s financial challenges.
I am Molly Monks, a licensed insolvency practitioner at Parker Walsh. I have over 20 years of experience helping directors with the financial struggles they may face. I understand that it can be overwhelming and stressful, so I offer practical straightforward advice, which is also free and confidential. I spend time with directors to get a good understanding of their business and their goals, therefore providing the best tailored advice possible.
Email: molly@parkerwalsh.co.uk
Phone: 0161 546 8143
If you have any questions about your business, we're always happy to help. Our advice is free and confidential.
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