What is a Creditors Voluntary Liquidation (CVL) and when should I consider it?

A Creditors’ Voluntary Liquidation (CVL) is a formal insolvency process initiated by you (director or shareholder) of an insolvent company. It’s used when the company can no longer pay its debts and needs to be wound up in an orderly manner, clearing unsecured debt and liabilities.

You might consider a CVL when:

• Suffering cash flow problems
  Cash flow issues persist, preventing you from meeting obligations such as wages, rent, and supplier invoices.
• Experiencing mounting creditor pressure
  Creditors are escalating their demands, including threats of legal action or County Court Judgments (CCJ).
• Wanting to avoid Compulsory Liquidation
  You aim to prevent a forced winding-up petition by a creditor and maintain greater control over the process.