Business Survival Guides
X

Free Business Survival Guides

Helping your business in difficult times

Open the guides

(stop this box auto launching)
 
Help for Directors

All businesses face the occasional financial crisis but when they become a critical problem you need to know exactly where you stand. In our help for directors section, you will find specific information for answering your questions around if you are insolvent, what you need to do if you are and how it will affect you.

Launch 'Help for Directors'

Quick Section Links

Worried About Insolvency | BBLs | Dealing With Creditors | HMRC Arrears | Directors & Redundancy

Creditors Voluntary Liquidation

What is known as Creditors Voluntary Liquidation is the process that most businesses must go through if they are insolvent. It can be a difficult time for everyone involved, so we have created this special section of our site to give you the important facts about CVLs in a clear and down to earth way so you can see where you stand.

Launch 'Creditors Voluntary Liquidation'

Quick Section Links

Explaining the process | FAQs

Members Voluntary Liquidation

This is when your company is still solvent, but you (and your fellow directors) decide it is time to call it a day and retire or move on to the next stage of your lives.  With an MVL, you will release the assets and use these funds to pay off the creditors before returning the remaining funds to the shareholders.

Launch 'Members Voluntary Liquidation'

Quick Section Links

Members Liquidation | What happens during and MVL | FAQ

Creditors Liquidation Home

Creditors Liquidation Home

What is a Creditors’ Voluntary Liquidation?

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.

An overview of the CVL process

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.

 

What will your fee be?

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. 

 

transparent gif