Creditors voluntary liquidation (CVL)
A CVL provides you and your fellow directors the option to voluntarily close your business and is usually chosen when a turnaround of the business is not feasible. Under this process your insolvent company is formally placed into liquidation and allows the creditors to recover as much money as possible.
It is better than being forced into compulsory liquidation by one of the company’s creditors. It can protect you from the risks from a compulsory liquidation, and allow you to draw a line and move on with your future reputation intact to start another business again.
When is a CVL the right option?
- The business is out of cash and cannot pay its debts
- Creditors are threatening a winding up petition
- The company cannot be turned around and made viable
- There is a serious risk of exposing the directors personally to accusations of wrongful trading, by incurring more debts whilst the business is insolvent
- Helps you to move on and start afresh
IMPORTANT THINGS TO KNOW
- Looking into the conduct of the directors and the way in which the business was conducted
- Whether any assets have been sold at an under-value
- What assets can be sold to recover monies for creditors
- Whether some creditors were paid in preference to another, which is not permitted under the rules.
How WE Help
We help you successfully manage the CVL process
A CVL is a challenging situation for the directors to handle and expert help and advice will ensure you come through it successfully with your business reputation intact and start again.
Clarity Transformation can help you successfully start again.
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