What is Creditors voluntary liquidation, voluntary liquidation or CVL?There is a solution. It is called liquidation or more specifically creditors voluntary liquidation. KSA Group can help you to end the worry and get the liquidation of a limited company completed quickly and professionally. We can help you stop those creditor calls and worries, end those sleepless nights and ultimately help you, as directors, get on with your life.
or read our detailed page on liquidation. How about reading some testimonials from directors?
We could help you start the liquidation process today, please call on 0800 970 0539 in office hours 8.30am till 5.00pm. Or call Wayne Harrison (IP) direct on 07879 55535 or Eric Walls (IP) direct on 0778 727 8527 or email email@example.com. If your enquiry is out of hours you can call our mobile on 07833 240747
FIRST the simple description of a creditors voluntary liquidation (CVL)
Usually the company has run out of cash, the directors do not think it is viable, they know the company cannot pay its debts on time and the directors are concerned that the business may build up more debts. They are also worried about Wrongful Trading.
A CVL can bring a quick end to the worry, if or course you act soon enough and have acted properly as directors. Yes, you can be a director of another company after a liquidation, but it is important to note that there are strict controls over the re use of a company name. This is covered by section 216 of the Insolvency Act. It is in fact a criminal offence to use a same or similar sounding name.
So for example Fox and Hound Building Company Limited goes into liquidation and then you start another company called Hound and Fox Buildings Limited. This can be a criminal offence and if the second company fails you would have NO PROTECTION and be held liable for the debts of that second failed company. Get specialist help from us on this on 0800 9700539.
What is a "phoenix company"?You can liquidate a limited company and start the same business again, but only under strict rules and conditions as above. This is a potential legal "minefield" and you need to take proper advice. Call us or read the detailed CVL guides if you want more details or you can look at our updated page on phoenix companies
What if the company can be viable?But, before you decide on liquidation as the appropriate option, you should also consider whether your company can be viable if radically restructured and, if so, how can you get help. If there is a viable business in there but you are tired and distressed we can still help.
We can show you how to reduce costs, settle debts and restructure the company. We have 20 years experience in this work and many people call us saying liquidate my company please! Then once we take away the pressure and look harder at the business problems, we can often see a solution. This could be trading out or a company voluntary arrangement.
Ok the company is not viable and I want to avoid personal risk?The best bet is to quickly get the liquidation process started, see the detailed guides below and then please call us to get friendly but expert advice. We can end the worry and the pressure with one phone call 0800 9700539. Want to know more about liquidation then you can visit our dedicated liquidation site.
Step 1Find a liquidator. We have a number of insolvency practitioners at the firm. Uniquely to KSA Group, YOU can speak to one of our IP's TODAY, if you call now on 0800 9700539. It is not possible to liquidate your own limited company, as the law just doesn't allow it.
Step 2Pass details of any company assets over to the proposed liquidator, and our valuers may get these valued. This will independently set the value of the assets for going to auction, or you may wish to buy them.
Step 3Let us know who the company owes money to (creditors). KSA Group will write to them all to let them know what's happening and tell them that a creditors meeting will be held. This will quickly remove creditor pressure from YOU and they will start talking to KSA instead!
Step 4Give us all company information and books and records. KSA Group will give you a list of all the information we need in order to liquidate your company. This information will allow us to prepare the necessary reports for the creditors.
Step 5A company director needs to "chair the meeting of creditors". In actual fact the liquidator will run the meeting but you or one of your directors must attend it by law. The meeting of creditors is usually a simple short meeting with no one attending.
Voluntary Liquidation of an IT Company
"I just wanted to thank you and the team for helping me and indirectly my family through what was a very difficult time, both emotionally and financially. Wayne was fantastic at putting me at ease and throughout the whole insolvency process, it was less stressful than I had first anticipated; many thanks Wayne.
I must say the the professionalism and personal touch of the whole team was exemplary. From the first introductory meeting all the way through the final insolvency process. What was a significant factor in my decision to assign KSA Group was the feedback given by previous clients and the sensitive way in which my case was dealt with because the circumstance leading up to the difficult decision to apply for insolvency were extra ordinary. My deepest thanks to everyone and as promised I will ask the wife to bake some special KSA Group class cupcakes for the team to enjoy which I will deliver personally.
Many many thanks...
1st August 2011
Voluntary Liquidation Case Studies
- Case Study
Small Hampshire IT Consultancy Company - IR35
- Case Study
Multiple Group Companies Case
- Case Study
Franchise Company - Signs
- Case Study
Training Company, London
- Case Study
Electronic Components Distributor (CVL)
- Case Study
North East Recruitment Company (CVA and CVL's)
Call us now to talk through the issues and get free advice, 0800 970 0539.
If you're based in the South East call 020 7877 0050.
Based in the North? Call 0191 482 3343.
Based in Scotland? then call 0131 242 0081.
Based in the Midlands? call 0115 971 7063
Based in the South West call 0193 452 7690
Liquidation Case Study Training Company, London
A training company had grown fast mainly on the back of one key contract. A fast growth but not yet profitable business with good prospects, turned into sharply loss-making business when the contract came to a messy end.The directors struggled on and tried to reduce employee numbers, but they were faced with tribunals and redundancy costs that the company could not meet. Even a company voluntary arrangement (CVA) could not help the company and it was time to liquidate it.
Within 24 hours the company ceased trading and the liquidator took control of all of the big issues. The directors soon bought out the name of the old business and the remaining contracts and set up again as a small (phoenix) company.
They learned the very OLD business lesson, turnover (from a big contract) is vanity, profit is sanity".
Think liquidation will solve your problems? Then call and talk to Keith Steven on 01289 309431 or 0800 9700 539 NOW, well take away the worry, stress and pain
Author: Keith Steven