Creditors’ Voluntary Liquidation
Stay in control – liquidate voluntarily before being forced by creditors.
What is a CVL?
A Creditors’ Voluntary Liquidation (CVL) is a formal process where directors close an insolvent company instead of a court order.
A CVL gives a clear legal process for closing a company, ensuring everything meets statutory requirements. It brings formal closure and helps directors move on to new opportunities.
Advantages Of Voluntary Liquidation
Keep more control - close your company on your terms
Formal Closure and a Fresh Start
A CVL Allows you to close a potentially insolvent company with no further liability (unless debts have been personally guaranteed).
Fast Debt Resolution
It helps resolve outstanding debts by distributing available assets among creditors, providing clarity and finality to debt obligations. Leases and contracts are canceled, and obligations are discharged.
Releases the Pressure
HMRC, with unique enforcement powers, can pursue unpaid taxes without a court order. Bailiffs can seize assets—such as equipment, vehicles, and inventory. A CVL helps prevent this unpleasant situation.
Creditor Relations
By engaging with creditors in a structured manner, a CVL demonstrates a responsible approach to resolving insolvency. This can improve creditor relationships compared to an abrupt closure.
Avoids Compulsory Liquidation
When a winding-up petition progresses to a winding-up order, compulsory liquidation follows. A liquidator—chosen by the court—is appointed, leaving directors with little control over the process. This situation is best avoided.
Director Protection
By acting decisively and initiating the CVL process, directors can minimize personal liability. It demonstrates to creditors that they have taken responsible action by seeking professional advice and helps mitigate the risks associated with wrongful trading.
Expert Guidance
The process is overseen by one of our insolvency practitioners, with the team providing professional support to manage creditors, distribute assets, ensure legal compliance, and ultimately remove the company from the registers at Companies House.
Directors Redundancy Payments
When entering a CVL, payments for outstanding wages and redundancy may be available from the National Insurance Fund. Calculate Statutory Redundancy payments here.
4 Steps to a Clean Slate
We've simplified the process so you can focus on moving forward, not on paperwork.
Free Consultation
One call. No obligation. We listen to your situation, explain your options clearly, and tell you exactly where you stand — including any personal liability questions.
Creditors Handled
From the moment you engage us, we become the point of contact for your creditors. The calls and letters stop coming to you - immediately.
Liquidation Process
We handle all the legal and administrative requirements of the liquidation, keeping you informed at every stage without burying you in jargon.
Move Forward
Once complete, you're discharged from company liabilities. You're free to work, earn, and start over without the weight of the past company holding you back.
Liquidating with us
"Our agents work closely with you to establish the value of the company's assets. If you are planning to set up a new company and feel the company assets are of benefit to your new venture; you will be provided the opportunity to make an offer providing it reflects valuation figures"
Jon Rudd
Operations Director
Get Free, Confidential Advice
Our team is ready to answer all your questions.
0333 004 8475 Book A Callback Get A Quote Email Us a Letter Find Cheapest Tool
