Creditors’ Voluntary Liquidation (CVL)
A Creditors’ Voluntary Liquidation (CVL) is initiated by the directors of an insolvent company via a board meeting. CVLs are overseen by insolvency practitioners, whose appointment is made by the shareholders and ratified by creditors.
It allows a company to wind up its affairs and distribute its assets to creditors. It is initiated by the company’s directors when they believe that the company is insolvent and unable to pay its debts.
If your business is struggling with debt, CVL offers a simpler option with lower costs than a compulsory liquidation.
Why choose a Creditors’ Voluntary Liquidation?
The principal benefit of a CVL over a compulsory liquidation is the speed, cost and control over the process. A CVL is usually seen as a more positive process because it is initiated by the company itself, rather than being forced on it by creditors.
It is important to act quickly as Directors can be held personally liable for liabilities incurred if trading continues whilst insolvent.
Facing financial pressure from your suppliers
If you are experiencing financial difficulties and need help getting through a difficult situation, please contact us today to learn more about our Creditors’ Voluntary Liquidation (CVL) services. We would be happy to discuss your specific needs with you and provide you with a free consultation.
Are you in need of expert advice to manage your debts?
Contact us for a free exploratory discussion. Call us
Contact us
