Understanding Voluntary Liquidation (CVL’s)
Liquidation is the process of closing a company that just has too much debt to go on or has served it’s purpose. The assets of the company are sold (this can be to a Director) and the revenue from this goes to towards paying creditors.
Liquidation is surprisingly popular with Directors, once they have looked into it properly and dispensed with the myths surrounding Liquidation, it does become a preferred solution.
You should be considering Liquidation if any of the following apply:
- Your debts are just too large
- There is outstanding legal action against the company
- You have no assets
There are some very misleading rumours around regarding Liquidation, we would advise you check the facts out with us first before deciding – please don’t rely on misinformation to decide.