Creditors Voluntary Liquidation
A Creditors Voluntary Liquidation (CVL) is a process whereby your company is closed by your consent and stays dead, buried and forgotten about. At least that’s your wish.
Your creditors may have other thoughts! A CVL will ease the sleepless nights and creditor harassment enabling you to get your life back and should you wish, set up another company.
What is a Creditors Voluntary Liquidation?
A Creditors Voluntary Liquidation is the most common way for directors and shareholders to deal voluntarily with their company’s insolvency.
A Creditors Voluntary Liquidation, is the process of closing a company and turning any of the assets that the company may have, into cash to pay as much as possible to the creditors of the company.
A Members Voluntary liquidation is used when the company is solvent and is able to repay all of its debts, with any remaining funds returnable to the shareholders of the business after all the fees have been paid.
A Creditors Voluntary Liquidation and a Members Voluntary Liquidation are different from a Compulsory Liquidation, which is when a third party forces the company into liquidation as a result of a successful winding up petition.
How Can I Liquidate a Company?
Instruct TaxGone to prepare paperwork and collate all the initial information that is required for liquidating.
It is not too late to place your company into liquidation even if your company has a winding up petition. To do so may be in the best interest of the creditors, since Secretary of State fees (a form of Government taxation in a compulsory liquidation) apply in compulsory liquidations but not in CVLs.
Once TaxGone has received instructions to prepare for a liquidation, events move quickly. A licensed Insolvency Practitioner is instructed and meetings of the company’s shareholders and creditors are set where two main things happen: the shareholders agree that the company should be wound up and the Creditors are provided with details of the company’s financial affairs and approve the appointment of a liquidator.
It is important to remember that your view on your own company may be based on the creditor pressure that you receive on a daily basis and that this view may be changed if you read our section on Company Voluntary Arrangements (CVAs)
How Much Does it Cost To Liquidate a Company?
The answer is the same for the question, “How much is a car?” It depends on the car – It depends on the company.
Contact TaxGone today on: 01302 815846 and come visit us at our offices.