Creditors Voluntary Liquidation could be the ideal solution for you.
If you want to close your company and start afresh, or simply walk away, a Creditors Voluntary Liquidation (CVL) could be the ideal solution for you. Our experts will work with you to implement the CVL process and liaise with your creditors.
Creditors Voluntary Liquidation is the most common form of liquidation in the UK and our team here at Keywood Group have many years’ experience assisting directors in placing their company into a CVL process.
Benefits of a CVL
✓ Swiftly removes creditor pressure.
✓ Outstanding debts are written off.
✓ Halts further legal action and prevents further losses.
✓ Brings an end to worries regarding company debts.
✓ Provides directors with control and comfort in dealing with their chosen liquidator.
✓ Allows employees to claim redundancy pay and unpaid wages from the government.
✓ Provides ability to discuss existing asset purchase.
✓ Can offer support a business needs to continue trading under a separate legal entity.
Reasons to choose us
✓ Licensed firm of Insolvency Practitioners
✓ Innovative Solutions for Directors & Companies in Financial Distress
✓ Free same day no obligation confidential consultations
✓ Clear concise advice about options available
✓ Transparency about costs
✓ Fully nationwide service and experienced staff
We recognise the pressures being faced when you or your business are experiencing financial difficulties and no matter what the circumstances, you or your business will feel at ease once you have spoken to us.
What is a Creditors Voluntary Liquidation?
A CVL is a voluntary process initiated by the directors and shareholders of a company having recognised that the company cannot pay its liabilities as they fall due. It is usually seen as an option when a company’s financial position has deteriorated to a point of no return or when directors want to close a company and start afresh, or simply walk away. In such circumstances company directors have a duty to act in the best interests of creditors to protect their position.
Can I start a new company and can I act as a director again?
Yes. Just because you are a director of a company that is in liquidation, you are not prohibited from being a director of other companies. The two most common scenarios which prohibit you from being a director (or involved in the management, promotion or formation of a business) are if you are declared bankrupt, or you have been disqualified pursuant to the Company Director Disqualification Act 1986. Please contact us to discuss this further if it is of concern.
Can I restart under a similar name?
Yes you can, providing that you follow the correct legal process; otherwise you could face prosecution and personal financial issues in the future.
What is the difference between CVL and compulsory liquidation?
A CVL is a voluntary process initiated by the directors and shareholders of a company having recognised that the company cannot pay its liabilities as they fall due. Choosing to enter into a CVL protects the company from facing compulsory liquidation which ordinarily restricts any form of control or foresight into the company’s closure.
Compulsory liquidation usually commences with a creditor issuing a winding up petition. Further details about how we can help if you are faced with a winding up petition can be found here.
How long does it take to enter CVL?
Providing all financial information in respect of the company is readily available, we always aim to have placed the company into CVL within 14 days of instruction. In some specific circumstances, the process may take a little longer but we will be able to advise you of this upon instruction.
What happens to the assets of the company?
The assets of the company vest in the liquidation estate. As a director, you will have the duty to deliver up all assets to the Liquidator who will aim to dispose of them for the benefit of creditors. An independent agent will usually be engaged to ensure that the best possible price is achieved for tangible assets.
Will creditors be paid and will I be held personally liable?
Not necessarily. The prospect of a return to creditors is dependent upon the assets available and costs of the process. Notwithstanding this, the liabilities remain with the company (in liquidation) so you will not be held personally liable for any of the company’s debts. The caveat to this, of course, is whether you have signed personal guarantees for one of more of the company’s debts.
How long does a CVL last?
The length of the CVL is dependent upon a number of factors, such as difficulties in realising assets, discrepancies within the company’s financial affairs that need to be reviewed and any other general complexities. A straight forward CVL would typically be concluded within 12 months. There is no time limit for a CVL and some can stay open for many years. Upon the conclusion of the liquidation, the company will be dissolved at Companies House.
Our Accreditations
Keywood Group are an independent leading Licensed Insolvency Practice, providing fully confidential, no obligation specialist advice in all aspects of business insolvency.
Keywood Group adheres to the Insolvency Code of Ethics and our insolvency practitioners are licensed and regulated by the Insolvency Practitioners Association (IPA). All our practices and procedures are regularly monitored to ensure we adhere to strict guidelines in place by our governing bodies.
Our insolvency practitioners have successfully completed the Joint Insolvency Examination Board (JIEB) requirements and have the requisite practical experience to satisfy your needs.
We are also proud members of R3 who are the trade association for the entire community of the UK’s insolvency and restructuring professionals.
We are accredited by the following industry leading organisations
“Spoken to other companies who said I needed to Liquidate. Spoke to Roger and Harinder who sorted out a payment plan with my main creditor and I can now see my company moving forward”.
Mrs Gould – Birmingham.
“Thank you Keywood for the advice given, straight to the point, in a way that gave me confidence to move forward”.
Mr Simmonds – London.
Birmingham Office:
Gill House, 140 Holyhead Road, Birmingham, West Midlands B21 0AF
Tel: 0121 201 0399
London Office:
AMP House, Dingwall Road, Croydon, London CR0 2LX
Tel: 0208 912 0399
Email: info@keywoodgroup.co.uk
Keywood Group Limited | Company Reg No. 08160224
