Creditors’ Voluntary Liquidation (CVL)
A way for directors to close down a company that can’t pay its debts. We help companies and directors in Leeds, Sheffield, Bradford and across Yorkshire and the UK.
Please note: this page is a brief, general overview to help you understand your options. It doesn’t cover every detail or every possible route, and it isn’t legal or financial advice. Every situation is different, so please talk to us before making any decisions.
In short: a way for directors to close down a company that can’t pay its debts.
If your company can’t pay what it owes and there’s no realistic way to turn it around, a CVL lets you close it down properly. It’s called “voluntary” because you choose to start it, rather than waiting for a creditor to take the company to court.
What happens
- The shareholders vote to close the company, and a licensed insolvency practitioner is appointed as liquidator to take charge.
- The company stops trading. Staff can claim money they’re owed from the government’s Redundancy Payments Service.
- The liquidator sells what the company owns and shares the money among the people it owes.
- The liquidator looks into how the company was run, as the law requires, and reports on the directors.
- The company is closed and removed from the Companies House register.
Things to know
- Unless you’re disqualified, you can be a director of another company in future.
- There are rules about reusing the old company’s name, so check with us before you do.
- Any personal guarantees you’ve signed may still apply. We’ll go through your own position with you.
- Limited liability partnerships (LLPs) can also be closed this way.
Other options
Creditors’ Voluntary Liquidation (CVL) isn’t right for everyone. These are the other corporate insolvency options, or you can compare them all.
What our clients say
Facing my financial position was overwhelming, but Conselia provided me with clear guidance and support. They were professional, approachable, and always explained the process in a way I could understand. Thanks to their expertise, I was able to regain control of my finances and start fresh. Highly recommended!
IVA client
I can’t thank Conselia enough for helping me through such a difficult period. Their team was understanding and completely non-judgmental, providing solutions tailored to my situation. They made what felt like an impossible challenge manageable.
IVA client
From our first conversation, Conselia made me feel reassured and in safe hands. They handled everything efficiently and were transparent about every step. I now have peace of mind and a clear path forward, and I’m so grateful for their support.
Company director
Dealing with insolvency is never easy, but Conselia turned a stressful situation into a manageable process.
Company director
I was hesitant to seek help, but Conselia put my mind at ease right away. Their professionalism, knowledge, and understanding were second to none.
Company director
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