Creditors Voluntary Liquidation

When your business is under pressure to pay creditors, there is an increased chance that your business will be forced into liquidation. However, by entering into a Creditors Voluntary Liquidation or CVL, you will have more control over the process.

A Difficult Position

Companies based across the UK find themselves from time to time in an insolvent position but are able to continue trading as a viable business while they manage any cash flow issues in the short term.

However, if the Director's of a business come to the conclusion that they are unable to continue trading without having a negative impact on the financial position of it's creditors, the only alternative is to close the business and cease trading.

Definitions Of Insolvency

There are 2 ways in which a business can be defined as insolvent;

1. If it's liabilities exceed it's assets

2. If it is unable to pay its debts as and when they are due

Liquidation Options

There are 2 ways in which your business can be liquidated if it is insolvent;

1. It can be forced into liquidation by creditors

2. If the company directors decide to enter into a Creditors Voluntary Liquidation (CVL)

Need more information on a CVL?

How We Can Help

If you feel that your business is no longer able to trade or believe that you may be forced by your creditors into compulsary liquidation, the team at Williams Lester Accountants are able to help in a numbers of ways with a CVL.

We work with industry leading specialists to provide you with a simple, hassle free process which will provide you with a good outcome for your creditors while reducing your risk of any illegal trading charges.

Although the CVL will result in the closure of your business with the proceeds from the sales of any assets going to your creditors, we will provide you advice and asistance while reviewing your company's finances to ensure you are making the right decision.

If you would like to find out more, please provide us with your details and if you would like to speak directly with a member of our team, please get in touch.

 

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