Wednesday, 21 November 2012
What does voluntary liquidation mean ?
Creditors voluntary liquidation or compulsory liquidation means the end of the company and its assets are then "liquidated" or turned into cash for the creditors, if possible. Creditors voluntary liquidation (CVL) is the most common form of liquidation in use in the UK.
Usually the company has run out of cash, it cannot pay its debts on time and the directors are concerned that the business is simply not viable. They are also very worried about wrongful trading.
A CVL brings an end to worry, if you have acted properly as directors, and it will allow you to get on with your life. Yes, you can be a director of another company after a liquidation!
What is a "Phoenix"?
You can liquidate a company and start the same business again, but only under strict rules and conditions. This is a potential legal "minefield" and you need to take proper advice.
Call us or read our Experts Guide to Creditors Voluntary Liquidation (see link below) if you want more details. This FREE guide tells you all you need to know about liquidation or call us on 0800 9700539 for a free chat through your company's issues.