Liquidations (CVL)
Sometimes, closing down is the best option. If your business can’t pay its debts. Once the Liquidation is complete, the company is removed from the register at Companies House and legally shut down.
Creditors’ Voluntary Liquidation (CVL)
A CVL is used when a company can’t pay its debts and company directors decide to close it. This process is started by the directors but handled by a licensed insolvency practitioner. The liquidator works to sell the company’s assets and distribute the money to creditors.
Choosing a CVL can help directors stay in control of the situation and avoid being taken to court by creditors. It also shows that you’re acting responsibly by putting creditors first.
Compulsory Liquidation
This type of liquidation happens when a creditor asks the court to close your limited company because you haven’t paid a debt. If the court agrees, it issues a winding-up order and your company is forced into liquidation. An Official Receiver is appointed to handle the process. This process is out of the control of the director.
Our Liquidation Process
We make liquidation as straightforward as possible. Whether your company is solvent or insolvent, we follow a clear process to keep things simple and stress-free.
Free consultation
We’ll start by reviewing your company’s situation and explaining the best options.
Appointing a liquidator
If liquidation is right for you, we will work with you to prepare all the documentation needed to appoint us as the licensed insolvency practitioners. Understandably there is quite a bit of paperwork and we will guide you through the process.
Valuing assets
The liquidator works to identify, value, and sell the company’s assets to raise money.
Notifying creditors
We notify all creditors and publish the liquidation notice in The London Gazette.
Liquidators duties
Once appointed as liquidators we are no longer acting for the directors. In a solvent liquidation we act for the shareholders in an insolvent liquidation we work for the creditors.
Selling assets and realising debts
Once appointed as liquidators we are no longer acting for the directors. In a solvent liquidation we act for the shareholders in an insolvent liquidation we work for the creditors.
Investigations and reporting
In an insolvent liquidation we are required to carry out investigations to ensure that all the assets of the company have been disclosed and make a report to the Insolvency Service on the conduct of the directors.
Paying Off Debts
The money raised is used to pay the company’s debts in the correct legal order.
Closing the Company
Once everything is complete, the company register is updated at Companies House and officially dissolved.
We keep you informed at every step and take care of the paperwork so you can focus on what’s next in your life. Allowing you to leave the problem company behind.
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Benefits of Voluntary Liquidation
Voluntary liquidation, gives company directors more control and better outcomes than waiting for a creditor to take legal action. In a CVL, you can act early, reduce legal risks, and avoid being forced into court. It also helps protect your reputation and may allow you to claim redundancy as a director.
Liquidation vs Strike-Off
Strike off, or dissolution, is a cheaper way to close a limited company, but it’s only suitable for businesses with no debts, no legal problems, and no outstanding taxes. If your company has creditors, they can object to the strike-off and even have the company restored to the register to pursue unpaid debts.
Liquidation, on the other hand, is a formal process that settles all debts properly and legally. It also protects company directors from the risk of being held personally responsible for mistakes. If you’re unsure which route to take, we’ll help you choose the best and safest option.
Starting Again After Liquidation
Closing a company doesn’t mean you can’t start another one—but there are rules you must follow. Company directors can’t use the same or a similar company name unless they follow the correct legal process. This might involve buying the old name from the liquidator and telling creditors or applying for court permission.
Trying to trade under a similar name without doing this could result in fines or even a ban from being a director. We’ll guide you through the rules and help you stay compliant if you plan to launch a new business.
Frequently Asked Questions
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