What is a creditors voluntary liquidation or CVL?

What is a creditors voluntary liquidation or CVL? 1

A creditors voluntary liquidation, or a CVL, is an insolvency procedure to place an insolvent company into Liquidation to bring its life to an end.

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 liquidation is broadly the same.

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 and easier option than a Compulsory Liquidation.

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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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