Creditors’ Voluntary Liquidation (CVL)

A creditors’ voluntary liquidation (CVL) ends a company’s life, but it can provide for all or part of the business to be transferred – at proper market value – to a new company. This means trading can continue without interruption. A CVL is the preferred route for realising and distributing assets where trading has to cease. Where a business is no longer viable, directors should talk to us as early as possible to avoid wrongful trading under the Insolvency Act 1986 and being personally liable for the company’s debts.