How Creditors Voluntary Liquidation Works and the Effect on the Business?

When a business is suffering from debts they cannot honour and creditors are demanding payment, the directors of the business are often in the position of having to consider liquidating the company. In some cases, creditors will have petitioned the court and for        ced the company into compulsory liquidation. However, if it hasn’t got that far, there is the option of a Creditors Voluntary Liquidation, or CVL.


A CVL is a formal insolvency process; the directors voluntarily choose to cease trading and wind up the insolvent company. Whilst no company director wants to be in this position, it is often the best course of action for all parties. So, how does a Creditors Voluntary Liquidation work and in what way does it affect the business?


Location: London, UK

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