Creditors’ voluntary liquidation

There may be better options if your company is under threat of liquidation. Before you consider closing down your company talk to McTear Williams & Wood to understand your choices.

Are you looking to liquidate your company?

If your business is suffering distress then you may wish to use a creditors’ voluntary liquidation (also known as ‘CVL’) to shut down your business and effectively end trading.  

Unlike compulsory liquidations, a CVL is initiated by company directors giving more control over the closing down process.   

It may be the case that your company is technically insolvent or you can no longer afford to meet the terms of credit repayment agreements. 

A creditors’ voluntary liquidation effectively ends your responsibilities and uses the company’s remaining assets to pay off your creditors.  The assets are sold to the highest bidder – and that could be you. 

Part of our established process of implementing a creditors’ voluntary liquidation is helping you explore the options to recover your business.

Selling to a connected party

Directors are legally permitted to buy back their business and assets in a creditors’ voluntary liquidation.  

We are able to provide you with advice and support on how to purchase your business after a CVL and start trading again.  

If you are looking to liquidate your company call us today.

At McTear Williams & Wood our expertise in business turnaround could still help you recover your business if you act quickly.

See our top 10 frequently asked questions on creditors’ voluntary liquidation here.

Hayley Watson

Director

Norwich office contact details:

Cambridge office contact details:

Hayley started her career working at McTear Williams & Wood in 2005 and is a Licensed Insolvency Practitioner advising companies and individuals experiencing financial difficulties, she works with a variety of stakeholders to establish and implement the best strategy for individuals and companies experiencing financial difficulties.

Hayley acts as an Insolvency Practitioner in all forms of corporate insolvency including creditors’ voluntary liquidation, compulsory liquidations, solvent members’ liquidations and company voluntary arrangements as well as advising individuals and acts as an insolvency practitioner for individual voluntary arrangements and bankruptcies.

Hayley qualified as a Licensed Insolvency Practitioner in 2019 and was appointed Director in March 2024. She is currently Chair of R3 Eastern Region committe and have over 19 years of experience in insolvency.

The liquidation process

We follow a proven step by step procedure to quickly and efficiently manage the liquidation of your company during a creditors’ voluntary liquidation.

  • Appointment and assessment – in the first instance you will work with one of our associates or directors to understand the challenges of your current financial situation.
  • Turnaround and rescue evaluation – McTear Williams & Wood can start to structure a business recovery plan that restructures your capital and we can help secure additional finance to fund a turnaround.
  • Extraordinary general meeting – should the company need to be wound up a meeting of the creditors is called to begin the formal process of winding down the business.
  • Act as liquidator – finally we can take an appointment as a liquidator in the liquidation to arrange a fast and efficient sale of your assets and business.  Find out more in one of our easy-to-read guides covering Liquidations and Creditors Meetings.
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Even if your business has received a winding up order we can still help you effectively realise your business assets to achieve the best outcome. Find out your options call us on 0800 331 7417.
It is rare that directors or business owners wake up one morning to find that disaster has suddenly struck. Financial problems tend to be insidious.  Indications that something is wrong may be more obvious to others than they are to you. Busy firefighting and juggling your budget it is understanding that you might fail to spot the warning signs. If you are in any doubt please get in touch, invariably the earlier you contact us the more we can do to help.

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