What is a creditors voluntary liquidation or CVL?
A Creditors Voluntary Liquidation, or a CVL, is an insolvency procedure which is started by the Company's directors, to place an insolvent company into Liquidation to bring its life to an end. In a Creditors Voluntary Liquidation it is the shareholders who decide whether or not the Company goes into liquidation, by passing the necessary resolutions.
A Creditors Voluntary Liquidation is an out of court procedure which uses a private sector Insolvency Practitioner, instead of the Courts and the Insolvency Service.
It is therefore a much quicker procedure and the cost of placing the Company into Creditors Voluntary Liquidation is broadly the same as instructing a solicitor to issue a Winding Up Petition.
A CVL can also be used to organise a phoenix company, which can increase assets realisations, save jobs and increase the return to creditors overall. More often than not a Creditors Voluntary Liquidation may be a better, quicker ad easier option than a Compulsory Liquidation, and accordingly is the option most directors choose to use.
More information can be found on our What is a Creditors Voluntary Liquidation webpage.
Alternatively, if you would like a free, no obligation face to face, Zoom or telephone meeting, with a Licensed Insolvency Practitioner, please ring 01326 340 579 or 01305 458 383, to arrange a mutually convenient time and date to discuss the options open to you and your Company.
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