Creditors’ Voluntary Liquidation (CVL)

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CLOSING DOWN AN INSOLVENT COMPANY

When a company can no longer trade as it is insolvent, a CVL is a process to enable a company director(s) to formally place a company into liquidation.

The liquidator has a duty to realise the company’s assets and distribute the proceeds to its creditors in accordance with insolvency legislation leading to the dissolution of the company.

THE PROCESS

The process is started by the company director(s) who are obligated to ensure that they are taking the appropriate steps to minimise potential losses to the company’s creditors and they should consider a CVL if the following indicators apply:

  • Cashflow is exhausted
  • Creditors are threatening a winding up petition or other legal actions
  • The company appears to not be viable
  • The company cannot pay its debts on time
  • They are concerned about “wrongful trading”.

LET'S WORK TOGETHER

If your company is experiencing creditor pressure and financial difficulties, and you would like to understand the CVL process in greater detail, please call our head office on 01992 392030 to speak confidentially with one of our directors or email info@rbwr.co.uk