Clear the Burden of Company Debt with a CVL (Creditors Voluntary Liquidation)
What is a Creditors Voluntary Liquidation?
How do I get my company into a Creditors Voluntary Liquidation?
The CVL process is straightforward, it takes anywhere from 9 days to many weeks. There is a timeframe laid down by law that you have to follow, but over and above this, the amount of time it takes is purely down to you and how quickly all the necessary information can be provided. On average the process takes 3 weeks from you making the decision to go ahead with the CVL.
The process itself involves a board meeting, followed by a meeting of shareholders and creditors. 75% or more of the shareholders attending and voting decide to place the company into liquidation and appoint a liquidator, the creditors then make decisions over issues like fees and confirm the name of the liquidator.
How long does a CVL last?
After the initial few weeks mentioned above, the liquidation can last for many years (unlike an administration), although this often only applies to complex cases, however from your point of view you do not need to be involved for this length of time. Once you instruct Lucas Johnson we will take care of everything.
Can I carry on in business?
Yes you can and what’s more you can even carry on with the same business, using a new company under the same name, although there are some hoops to jump through before you do. You simply make arrangements with us to buy the business back and you can start again the day after liquidation.
You can also become a company director again. In fact the only time you can’t be a director is when you are bankrupt or have been disqualified and neither of these happen lightly.
What does a Creditors Voluntary Liquidation cost?
It might cost you nothing. If the company has sufficient assets that can be sold and you don’t want to buy the business back it doesn’t cost you a penny. If you do want to buy the business back, the cost is the higher of our fees and the value of the assets. What are the assets worth? They will be valued by a 3rd party to confirm the debt, but we often find that directors have a reasonably accurate picture of the value of their company’s assets
How does a CVL affect me personally?
The company has limited liability so there is no personal liability unless you have given personal guarantees. A Creditors Voluntary Liquidation will not affect your personal credit rating. A director is required to attend the meetings of creditors, but don’t worry we will be there to support you all the way if a creditor attends, however this is not a common occurrence.
How can I arrange a CVL for my company?
You should call Lucas Johnson to speak to an insolvency practitioner who will be able to work out all the details for you and ensure you are taking the best course of action with your company.
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