Creditors Voluntary Liquidation (CVL)
Resolve your company’s financial issues and close your business in a structured and compliant way with expert Creditors’ Voluntary Liquidation (CVL) support from Chamberlain & Co.
A CVL is the age old insolvency process used to bring the activities of a company to a conclusion. We have extensive experience in its use as a traditional terminal process as well as using it as part of a creative business rescue and turnaround strategy. Most entrepreneurs use this straightforward process at some point to close a situation cost effectively.
What is Creditors’ Voluntary Liquidation (CVL)?
Creditors’ Voluntary Liquidation (CVL) is a formal process initiated by company directors to close an insolvent business. It allows the orderly winding up of the company’s affairs, ensuring that creditors are treated fairly. Chamberlain & Co provides comprehensive guidance throughout the CVL process to ensure compliance and support for directors.
Key Benefits of Our CVL Services:
- Legal Protection: Protect directors from wrongful trading claims by initiating the CVL process promptly.
- Debt Resolution: Manage and settle outstanding debts through a structured process.
- Professional Support: Receive expert advice and assistance at every stage of the liquidation.
- Clear Closure: Close your business with full compliance, ensuring creditors are treated fairly.
Why Choose Chamberlain & Co for Your CVL?
With over 25 years of experience in insolvency and business recovery, Chamberlain & Co is the trusted partner for businesses considering Creditors’ Voluntary Liquidation. Our team offers personalised advice and professional support to navigate the complexities of CVL.
- Experienced Insolvency Practitioners: Our team has extensive expertise in handling CVLs for companies across various sectors.
- Tailored Approach: We provide bespoke advice, tailored to the specific needs of your business.
- Transparent and Supportive: We guide you through the entire CVL process with clarity and continuous support.
- Regulated and Trustworthy: As an ICAEW-regulated firm, we adhere to the highest standards of integrity and professionalism.
Our Comprehensive Voluntary Liquidation Services
Chamberlain & Co provides complete support for companies undergoing a Creditors’ Voluntary Liquidation:
- Initial Consultation – We assess your company’s financial situation and determine the appropriateness of a CVL.
- Preparation and Filing – We handle all necessary documentation to initiate the CVL process.
- Meeting of Creditors – We arrange and manage the creditors’ meeting, presenting the case for liquidation.
- Asset Realisation – Our experts oversee the valuation and sale of company assets to repay creditors.
- Final Reporting and Closure – We ensure all legal obligations are met, providing a final report and closing the company.
Testimonial
The team at Chamberlain & Co are friendly and quickly put me at ease. They took the time to understand me and the business and how we were intertwined at so many levels. The various options available to me and the company were carefully explained as were the impact of different decisions taken by one upon the other, resulting in an optimised strategy for both.
Contact Us
Chamberlain & Co offers expert guidance to ensure a smooth and compliant CVL process, give us a call on 0113 242 0808 or e-mail advice@chamberlain-co.co.uk.
Chamberlain & Co is a leading provider of CVL services, trusted by businesses across the UK.
- Regulated by ICAEW: We uphold the highest standards of insolvency practice.
- Confidential and Professional: Your business information is handled with the utmost confidentiality.
- Proven Track Record: Our team has successfully guided numerous companies through the CVL process.
How Our Creditors’ Voluntary Liquidation Process Works in 5 Simple Steps
Step 1: Free Initial Consultation – Discuss your financial difficulties with our experts to explore CVL as a viable option.
Step 2: Preparation of Statement of Affairs – We prepare the necessary documentation, including a statement of the company’s financial position.
Step 3: Meeting of Creditors – Creditors meet to approve the CVL and appoint a liquidator.
Step 4: Asset Realisation – Assets are valued and sold to repay creditors as part of the liquidation process.
Step 5: Finalisation and Reporting – Once all assets are dealt with and debts settled, we provide a final report and complete the closure of the company.
Frequently Asked Questions About Creditors’ Voluntary Liquidation
What is Creditors Voluntary Liquidation?
Creditors’ Voluntary Liquidation is a process by which the directors of a company hold a meeting to resolve that the company should be placed into insolvent liquidation.
A general meeting of the shareholders is convened at which resolutions are passed that the company should be wound up and a Liquidator is appointed, a decision of creditors is then sought to confirm the shareholder nominated liquidator.
A licensed insolvency practitioner must be appointed to act as the liquidator.
What are the advantages of a Creditors Voluntary Liquidation (CVL)?
- The insolvency practitioner takes control
- The directors will have no further responsibility
- The directors are relieved from the ongoing risk of claims from creditors
- Employees arrears of wages, holiday pay, pay in lieu of notice and redundancy are met by the Government.
- The business and assets can be bought from the liquidator free of the liabilities incurred by the company.
What are the disadvantages of a Creditors Voluntary Liquidation (CVL)?
- Liquidation can be slower to initiate than an Administration.
- Trading can be more disrupted in this process compared with other insolvency options.
- Realisations are often restricted due to the distressed nature of the circumstances.
- If employees immediately transfer to a new company conducting any employee liabilities may be transferred with them.
Who is a CVL for?
- If the company is no longer viable.
- If the company cannot pay its creditors and is continuing to make losses.
- A profitable core business can be salvaged but a CVA is either not viable or not the preferred option for the directors. The business and assets can be bought from the liquidator to restart the viable core business in a new company.
How much does a creditors voluntary liquidation or CVL cost?
There are two elements to the cost of a liquidation, pre-appointment and post appointment. The pre -appointment cost will primarily depend upon the work required which in turn is impacted upon by the number of creditors, number of employees and the extent and type of assets to be realised. Depending on the foregoing a typical fee range would be £2,500 where the quantum in each category is low to up to say £10,000 or above in more substantial situations.
Who can initiate a CVL?
Directors of a company can initiate a CVL when they determine that the company is insolvent and cannot continue trading.
What happens during a CVL?
The company’s assets are sold to repay creditors, and the company is then closed. Directors are relieved of their duties once the liquidator is appointed.
How long does the CVL process take?
The duration of a CVL can vary, typically lasting several months to over a year, depending on the complexity of the company’s financial situation.
Can directors be held personally liable during a CVL?
Directors are generally protected from personal liability as long as they have acted responsibly and complied with their legal obligations.
