Do I Need to Liquidate My Company?
The Insolvency Practitioners behind Easy Liquidation have over 30 years' experience and have dealt with hundreds of solvent and insolvent businesses throughout their careers.
We believe in working closely with all stakeholders and providing honest, straight forward advice in order to alleviate the stress often felt in situations of financial distress. By taking this approach we will, in our experience, achieve the best possible outcome.
Our Approach
There are several options available to a company facing insolvency. These include Administration and Company Voluntary Arrangement. We are happy to discuss these options with you, but these are rescue procedures that aim to help turn around struggling businesses.
Administration and Company Voluntary Arrangement are probably not appropriate if the business is no longer viable and your only desire is to close down your company and move on with a fresh start.
The purpose of a liquidation is to close down a company in an orderly way using a regulated Insolvency Practitioner or Liquidator. There are three types of liquidation: Creditors' Voluntary Liquidation, Compulsory Liquidation, and Members' Voluntary Liquidation.
It is generally the case where a company owes an amount of money greater than the value of its assets or is unable to pay its debts when they fall due; it is considered insolvent.
What is Creditors Voluntary Liquidation?
The Creditors' Voluntary Liquidation process, or CVL, is entered into on a voluntary basis by the directors in order to bring an insolvent business to an end using their preferred choice of Insolvency Practitioner.
If you feel like you have exhausted all other avenues and are experiencing pressure from creditors, then a CVL is generally considered the most appropriate process for the closure of an insolvent company.
A CVL will bring your company to a close and will deal with the outstanding company debts. In simple terms, the appointed Liquidator will realise assets and, if funds allow, will make distributions to the various classes of creditor. If you have personally guaranteed any of your company assets, we can also provide you with general advice about how to deal with these.
FAQ/Guides
Not if you have acted in the best interests of the company and its creditors. If wrongdoing is found, then there are two elements. Firstly, you may have to contribute towards the liabilities of the company. Secondly, you may end up being disqualified from acting as a company director for up to 15 years. However, we see very few disqualifications.