Sterling Ford - Insolvency & Bankruptcy Services

   Creditors' Voluntary Liquidation - CVL

Creditors Voluntary Liquidation Direct Cost Effective, Outstanding Value for Money Creditors Voluntary Liquidations near St Albans, Woburn, Northampton and East Grinstead, for companies with no assets and with one or a few creditors. Fee includes processing a director's genuine claim for a payment to be made from the National Insurance Fund, whether for redundancy, unpaid salary/holiday pay or lieu of notice.

Why a Creditors Voluntary Liquidation (CVL)?

Unfortunately there are times when a company has 'had its day' and it is time to shut up shop. Although this may seem extreme, acting sooner by applying for a Creditors Voluntary Liquidation now than later is more likely to not only protect the position of creditors as well as employees, but also the position of the directors [see Director's Services] Such action could prevent:
  1. trade creditors suffering greater losses than necessary;
  2. the bank situation worsening and possibly the directors having to paying monies owed under their personal guarantees; and
  3. employees not being paid for long periods of time;

This route is usually the last voluntary resort for a company, as it is insolvent and cannot continue trading and is the most common form of liquidation in the UK.

What is the Creditors Voluntary Liquidation process?

With the assistance of an Insolvency Practitioner, directors would convene meetings of the company's members and creditors in order to place the company in liquidation and appoint a Liquidator.
If the company has not already done so, it would cease to trade.
All property and assets of the company including any book debts would be realised and the proceeds of these would fund the cost of the liquidation and any excess funds would be available as a dividend to creditors in the order of priority laid down by the insolvency legislation.
If the company has insufficient assets to cover the associated costs of the liquidation the directors would have to personally meet such costs. The level of these costs would be agreed between both parties prior to any steps being taken to place the company in liquidation. Sterling Ford's streamlined Liquidation Direct service minimises these costs to directors by offering fixed fee and disbursement packages.
At the meetings of members and creditors, a report would be presented detailing the history of the company, its financial circumstances and why it is being placed in liquidation. Members and creditors would be given the opportunity to ask the directors questions at their respective meetings. The members' meeting would pass a special resolution placing the company in liquidation and an ordinary resolution appointing a Liquidator. At the following creditors' meeting a vote would take place to either confirm the members' appointment of a Liquidator or to appoint another insolvency practitioner as Liquidator in his place.

Our Charges

For placing into Creditors Voluntary Liquidation a company with no assets and up to three creditors, typically HMRC, we charge £1,950 with disbursements of £367 plus VAT, £2,250 with disbursements of £426 plus VAT where there are no assets and up to 5 creditors and from £2,500 with disbursements from £526 plus VAT where there are six or more creditors, perhaps some employee claims, some nominal assets, which may or may not require independent valuation, and perhaps some pre-liquidation trading etc.

In a considerable number of the CVL cases this firm has dealt with the directors have had genuine claims for redundancy and the payments they have received have more than repaid any liquidation fees and disbursements the directors have paid where their companies have had insufficient or no assets.

For a different perspective, call us now on 0808 171 2291 or complete our enquiry form.