Creditors Voluntary Liquidation

By: Phoenix Company Consultants  01/07/2009
Keywords: Insolvency

In the event that the business is no longer viable then the Directors may pass a motion to place it in liquidation. The alternative is to wait to allow a creditor to issue a winding-up petition taking the matter out of your hands.

As long as the Directors have acted responsibly unsecured debt will be written off and they will not be disqualified. Taking the initiative is better practice to reduce any personal risks associated with liquidation.

Creditors Voluntary Liquidation (CVL)

Is the voluntary liquidation of an insolvent company by its own Directors & shareholders. This can be achieved by either the Official Receiver (at public expense) or by an Insolvency Practitioner. Using an Insolvency Practitioner will allow the Director to work with the towards a more controlled conclusion; starting at £2500 excluding VAT.

Keywords: Insolvency

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