Complete Guide to Creditors Voluntary Liquidation or CVL

When is it necessary for the directors of the company to think about Voluntary Liquidation?

• The company has run out of cash
• Creditors are threatening a winding up petition or other legal action
• The company appears to not be viable
• The company cannot pay its debts on time
• The directors are concerned that the business may build up more debts. 
• They are also worried about wrongful trading.

How will a Voluntary Liquidation stop my worries?

Voluntary Liquidation enables you to wrap up your company quickly and professionally. You can then become director of another company once the liquidation process is complete, but there are restrictions on the re-use of the company name. You will no longer be authorised to trade under an identical or similar name - it could lead you in court if you do so.  It is worth noting, if as a director you have been compliant and on the payroll for many years, you can actually claim redundancy from the government like any other employee. Ask us about this.

 

Voluntary Liquidation Process Step by Step

Step 1

Find a liquidator. We have a number of licensed insolvency practitioners at the firm. Uniquely to KSA Group, YOU can speak to one of our IP's TODAY, if you call now on 08009700539. It is not legally possible to liquidate your own limited company!

Step 2

Pass 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 3

Let 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. The meeting can be held over the phone or online. This will quickly remove creditor pressure from YOU and they will start talking to KSA instead!

Step 4

Give 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 5

A 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 and can be done online or by phone conference.  Though, from April 2017 a physical meeting of creditors will not be summoned unless this is explicitly requested by at least the following;

• 10% by value of creditors or
• 10% in total number of creditors or
• 10 individual creditors