Absolute Recovery Limited
 
 
CREDITOR VOLUNTARY LIQUIDATION
 

Insolvency can be defined in two ways; your company is insolvent if its liabilities exceed its assets, or if it is unable to pay its debts as and when they are due.

Numerous companies trading in the UK at present may find themselves in an insolvent position but many may still be viable businesses that are suffering from short term cash flow problems. However it’s time to take action if you feel that your Company cannot continue trading without worsening the position of its Creditors.

If you’re looking to place an insolvent Company into Liquidation, this process is called Creditors’ Voluntary Liquidation – known as a CVL. This solution is appropriate when there is no other option than the Company ceasing to trade and being wound-up. In a CVL, assets are realised and sold with a view to paying a dividend to Creditors where possible.

This route is only appropriate if your company is insolvent. For example if:

Its liabilities exceed its assets and/or
It cannot pay its debts when they fall due and
There is no prospect of the company continuing to trade

At Absolute Recovery, we are qualified to undertake the role of Liquidator using our extensive experience and expertise to secure the best outcome.

 
 
STEPS TO PLACE COMPANY INTO VOLUNTARY LIQUIDATION
 
 
Consider your Options
 

Speak with an experienced Insolvency Consultant.

The consultant will discuss with you the Company’s financial position including the assets, Creditors and liabilities of the Company to enable a rounded view to be taken, and to ensure the best advice is given.

 
Instruct Absolute Recovery
 

If the conclusion of the best way forward for the company is CVL, you will formally engage our services.

At this point we will need to collate all the information required to enable the process to begin.

 
Information to Creditors
 

We will issue a Statement of Affairs and information on the Company’s position informing all Creditors that the Company is to be placed into Liquidation and that a decision date has been set.

All future communication with Creditors will now be dealt with via Absolute Recovery.

 

It is never pleasant when a company needs to ‘close its doors’. However, it can become apparent a company is no longer viable and cannot be rescued.

In this case, it is often better for directors and creditors if a CVL commences as soon as possible.

If you think a CVL may be right for your company, get in touch today for a confidential consultation with no obligation.

 
 

 

 

 
Absolute Recovery Limited
1st floor, Block A
Loversall Court
Clayfields
Tickhill Road
Doncaster
DN4 8QG
 
 
Tel: 01302 572701
 
 
Absolute Recovery Limited, Registered No. 7966220

 

 

 

 

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