A CVL is the most common type of insolvency process in England and Wales, and it is mainly used by Small to Medium Enterprise (SME) businesses. When people talk about a company ‘going bust’ or similar a CVL is usually what they mean. A Creditors’ Voluntary Liquidation is what is known as a terminal process because it is used when there are no options available to recover or rescue a business and closure is the only route.
A CVL is a formal process that is carried out by a licenced Insolvency Practitioner.
Every business is different but in some cases the process can be dealt with in a few weeks.
As the CVL is a terminal act, it is important to be certain it is the right thing to do.
The first action we take is to meet with you to discuss the Company’s position to ensure it is the right option.
The Liquidator’s role is as follows:
Although a CVL is a process, it is often a complex one. Once you appoint Smart Business Recovery, we will use our extensive experience and knowledge to ensure things go as smoothly as possible. Our aim is not just to meet the legal requirements but also to help and guide you through the process.
Often people ask ‘what does it cost to close a Company via a CVL?”. This is a very pertinent question and, bearing in mind the situation, the cost of the Liquidation process is important. In most cases, these costs are met from the assets of the business. However, each case is different and that means the price will vary. A CVL for a Company with a handful of creditors, no employees and limited assets will be lower in cost than for a Company with one hundred creditors, 20 employees and many assets to deal with.
Whatever the circumstances though, we will be open and fair about the cost, and you will always have clarity on what is happening.