What are the advantages of Liquidation?

• Placing the company into Liquidation will stop debt enforcement including bailiff action.

• The Directors usually have control over the choice of Liquidator. As the Directors instigate the CVL process, they are able to meet with the Insolvency Practitioner prior to placing the company into liquidation and make sure they are comfortable with them.

• The process of placing a company into creditors voluntary liquidation can be completed within 2-weeks.

• There is usually no need for the Directors to attend any formal meetings. New rules introduced in April 2017, removed the requirement to hold a creditors meeting.

• The debts usually die with the company. The company’s debts are limited to the value of assets within the business; any debts remaining once all the company’s assets have been realised, will be written off. This may not be the case if the company’s debts have been guaranteed by the Directors or another party.

• In placing the company into liquidation voluntarily, the Directors can usually demonstrate that they have attempted to conduct themselves responsibly regarding the financial affairs.

See guidance and CVL frequently asked questions.