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What is Creditors Voluntary Liquidation or CVL

Liquidation or more specifically creditors voluntary liquidation is when a company stops trading and its assets are "liquidated" and turned into cash to pay back the creditors. 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.

Read our detailed guide for more free information, or you can download our free 50 page PDF guide.  

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

  • The company has run out of cash
  • 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 CVL stop my worries?

CVL 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.  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.

What is a "phoenix company"?

You can liquidate a limited company and start the same business again, but only under strict rules and conditions. 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 or see our page on starting a new company post liquidation for more information

Reusing your company name
Following liquidation, you will no longer be authorised to trade under an identical or similar company name. Choosing an identical or similar name for your new company could land you in court under section 216 of the Insolvency Act. You would also have no protection should the second company fold, and will be held liable for all associated debts.

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 give you expert help on how to

  • Reduce costs
  • Settle debts
  • Restructure the company. 

We have 22 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?

Quickly get the liquidation process started by reading the detailed guides below and calling us to get friendly, expert advice. We can end the worry and the pressure with one phone call 08009700539. 

Did you know, as a director who gets paid a salary through PAYE, you can also claim redundancy pay as well as possibly notice pay, holiday pay and unpaid wages? However there are some exceptions to this. Please call us to discuss further. 

Liquidation Process Step by Step

Step 1

Find 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 08009700539. It is not possible to liquidate your own limited company, as the law just doesn't allow it.

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.  From April 2017 though 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

Perhaps the process can be better understood looking at this flow chart

Liquidation Flow Chart

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The Ultimate Guide For Worried Directors

The Ultimate Guide For Worried Directors

Worried about poor cashflow? How to win new work? How to pay wages on pay day? For expert advice on a range of issues download our free Ultimate Guide For Worried Directors today.

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