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What is a Creditors' Voluntary Liquidation?

If your company needs to be liquidated, and you care about your future business reputation, a Creditors’ Voluntary Liquidation (CVL) is likely to be your best option.

{See the implications of letting your company go into ‘Compulsory’ Liquidation.}

A director can propose a CVL if:

  • Their company can’t pay its debts – i.e. it is ‘insolvent’
  • The shareholders agree and pass a ‘winding-up resolution’.

If a company does go into CVL, it means it will stop trading and be liquidated – i.e. ‘wound up’.

A CVL acknowledges your duties as a director to your creditors.

How much does a Creditors' Voluntary Liquidation cost?

Basic

£1,995

All Inclusive
  • No Assets
  • No Employees
  • Up to 10 creditors

Complex

Case by Case

  • Priced on a case-by-case

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Enquiry

Getting the best for all of the stakeholders

It is vital to balance the needs of the company director(s) with the duties owed to all the stakeholders who are involved with the company (including employees and creditors).

As Licensed Insolvency Practitioners we ensure this balance is achieved.

** WARNING **

If an advisor tells you that they can protect just the interests of the director(s) and that you don’t need to worry about anyone else – then they are acting outside the law.

Clarke Bell act within the law to help you:

  • Deal with the Insolvency
  • Help you move forward

And, crucially, you can do all of this without having to look over your shoulder – because you will know that everything has been done correctly and legally.

What it is not…

A CVL should not be confused with a ‘Compulsory’ Liquidation.

A Compulsory Liquidation is a process by which the Court appoints a government official (the ‘Official Receiver’) to take control of your company because you have failed to pay your debts and are clearly insolvent.

The Creditors’ Voluntary Liquidation Process

When you contact us, our friendly team will guide you through every step of the process.

In most cases there is no need for face-to-face meetings and you can ‘attend’ the meeting from the comfort of your own office.

There can be circumstances in which directors will be called upon to meet with the Liquidator, however, and failure to do so can be deemed an offence and/or grounds for disqualification.

Investigation

One of the duties of an insolvency practitioner / liquidator is to conduct an investigation into the affairs of an insolvent company. (this is known as a “sip 2 investigation”).

This is not something to be feared – unless you are deliberately trying to hide some misconduct. (If this is the case we will not be able help you).

How does it work?

When you contact us, we will listen to your situation and work with you (and, in many cases, with your Accountant) to find the best solution.

This can be done over the phone or face-to-face at a mutually convenient location. This advice is free of charge, with no obligation.

When you appoint us

You will be provided with a Payment Request and Letter of Engagement.

We will ask you to provide us with some detailed information – including a Director’s Questionnaire giving a history of the company and the reasons it is considering insolvency, along with Books & Records, payroll records and formal identification documentation for Anti-Money Laundering purposes.

Board Meeting of Directors

This is the first step in placing the company into Liquidation. It can be held at your home/office address – with no need for our attendance.

At the Board Meeting, the director(s) will sign the necessary paperwork confirming that the company is insolvent and that steps will be taken to place the company into Liquidation.

What to expect

At this Board Meeting, you will instruct Clarke Bell to prepare the necessary Notices for the forthcoming Meetings of Members and Creditors.

This includes advertising the resolution in The Gazette publication. The Meetings of Members and Creditors are usually both held on the same day, approximately two weeks after the Board Meeting.

It is at these meetings that the company will be formally placed into Liquidation.

The Meetings of Members and Creditors

Where the Meetings of Members and Creditors are held on-line via web link, you will need to be in front of a computer/laptop/tablet with web cam facility.

The Meetings of Members and Creditors can also be held in our office, if that is more convenient for the parties involved. It will last approximately 45 minutes.

The creditors

he creditors will be notified about the meeting (at least 7 days before it happens) and it will be advertised in The Gazette.

The Meeting of Creditors gives the company’s creditors an opportunity to ask the company director(s) about the failure of the business. The company’s Statement of Affairs (giving details of the company’s situation and assets) is also presented at the Meeting.

Take a look at some of our case studies

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