Creditors’ Voluntary Liquidation
Contact us for an individual quotation
Stay in control – liquidate voluntarily before being forced by creditors.
Get A Liquidation Quote
We are the Focus Insolvency Group and have years of experience in liquidations of all types.
Advantages Of Voluntary Liquidation
Keep more control - close your company on your terms
Gives directors a clean break
Allows you to close a potentially insolvent company with no further liability (unless debts have been personally guaranteed).
Quick and cost effective
Can be funded using company assets such as cash at bank, sale of assets, book debts etc.
Your duties as a director
It shows creditors you have done the right thing by taking professional advice and can steer you away from the implications of wrongful trading.
Claim redundancy payments
Employees and potentially directors can make a claim from the National Insurance Fund and receive payments for outstanding wages, holiday pay, pay in lieu of notice and redundancy.
What is a CVL?
A CVL is a formal method of closing a company; however, the name of this process can be confusing.
A CVL is not initiated by creditors nor HMRC but by company directors. This is also true of a Members Voluntary Liquidation (MVL); the difference being the MVL is for a solvent business whereas a CVL is for an insolvent business.
Put Legal Action on Hold
If you have been experiencing pressure from creditors such as bailiff action or a winding-up petition you can still put the company into voluntary liquidation.
Once we have given notice of the meeting to creditors, any bailiff action against company assets is void and therefore they tend to put all action on hold pending the appointment of a liquidator.
Government Redundancy Payments
If the company ceases trading and the employees are made redundant then we will give advice to all employees regarding making a claim in the liquidation.
There is a National Insurance Fund from which employees can be paid wages, holiday pay, pay in lieu, and redundancy owed to them in preference to all other creditors regardless of the level of assets in the company. Directors may also be able to make a claim.
Government Funded Redundancy Payments
When an insolvent company closes, employees may be able to make a claim from the National Insurance Fund and receive payments for outstanding wages, holiday pay, pay in lieu of notice and tax free redundancy.
This can cover the cost of the liquidation and leave money over for you.
I was going through a difficult period. To discover I was entitled to over £14,000 redundancy, tax free, when I closed my company changed everything.
Our agents work closely with you to establish the value of the company's assets. If you are planning to set up a new company and feel the company assets are of benefit to your new venture; you will be given the opportunity to make an offer providing it reflects valuation figures.
Joanne Haines - Senior Insolvency Administrator
