Creditors Voluntary Liquidation (CVL)
Creditors’ voluntary liquidation (CVL) is a voluntary process that is available for directors of a company to instigate an orderly winding up of the company. This process is normally utilised when a company is balance sheet insolvent and/or is unable to pay its liabilities as they fall due and the only option is to cease trade.
Directors should seek advice as to whether it is necessary to place a company into CVL as soon as they become aware that the company may be insolvent, as failure to do so may result in claims being brought against them for breach of duties or wrongful trading.
Where a rescue is not possible, turpin barker armstrong can assist directors with the formal liquidation process. This involves convening meetings of the company's members where resolutions are proposed to wind the company up and appoint a liquidator. A meeting of the company's creditors will also be convened in order to confirm the appointment of a liquidator.
The duly appointed liquidator will then seek to realise any remaining assets of the company for the benefit of creditors.
The process of placing a company into CVL is relatively straight forward and can be done in a very short space of time.
We at turpin barker armstrong have many years of experience working with directors to place their company into a creditors voluntary liquidation. Our licensed insolvency practitioners can assist directors throughout the whole process and are always at the end of the phone to answer any queries to make the process run as smoothly as possible.
We understand it is a stressful time and therefore offer the first meeting free of charge with no obligations to go ahead, we can discuss the whole process with the director to ensure it is the right decision for the company. We always suggest to seek advice as soon as the first signs of financially difficulty appear.