5 Stages for Simple Insolvent Liquidation
If you need to close an insolvent company, a Creditors’ Voluntary Liquidation (CVL) is a straightforward process that can immediately ease creditors’
We’ve designed a simple five-stage insolvent liquidation process to help you and others prepare for the company’s closure.
Making Company Closure Easier to Understand
When you need to close an insolvent company, we understand you may be worried about how unpaid debts will be settled and how long the closure process will take.
That’s why we’ve designed our five-stage process to be as easy as possible, so you’ll always understand what’s happening. We’ll also be here to guide you through each step and answer any questions you might have.
The 5 Stages of Insolvent Liquidation
Stage 1: Engagement
We’ll begin the CVL process by sending you an engagement pack, including documents for you to sign to formally appoint us to help start the CVL. You’ll also receive an information pack about us and our services, as well as a clear breakdown of the insolvent liquidation process so you know what to expect at each stage.
It’s important to read through everything included in the pack properly, as you must understand the implications of entering insolvent liquidation and the fees involved with our services.
Stage 2: Information Gathering
Once all the documents from Stage 1 have been signed, ourOnce all the documents from Stage 1 have been signed, our liquidation team will need important information from you to create a Statement of Affairs. You’ll be sent a questionnaire and a Business History form, which you should complete with the help of your accountant. The information needs to be accurate as it is used to report your company’s situation to creditors.
Stage 3: Board Meeting
At this stage, the Board of Directors will need to hold a formal meeting to proceed with the liquidation. As this is a legal requirement, we’ll provide all the necessary documents to facilitate the meeting, including the notices to convene the shareholders’ meeting and the creditors’ decision process. Once the signed documents are returned, we’ll notify the shareholders and creditors.
Stage 4: The Statement of Affairs and Report to Creditors
Our team will now have put together the Statement of Affairs and the Report to your company’s creditors, which you’ll review and sign. These are created using the information you provided in the questionnaire during Stage 2.
Signing confirms that the content is factual, honest, and accurate. You’ll be responsible for any false disclosures or omissions, so all the information you have given us must be truthful.
Stage 5: The Liquidation Commences
The liquidation of your company will begin once the shareholders’ meeting has been held, which is usually around day 10 of the process. You’ll receive all the documentation confirming the shareholders’ resolutions and the outcome of the creditors’ decision process.
The company assets will then be sold, with the proceeds used to cover the liquidation costs and repay creditors where possible. Once all aspects of the liquidation have been completed, the liquidator will issue their final report and a few months later, your company will be formally dissolved.
Being the director of an insolvent company can be confusing and stressful. Our five-stage insolvent liquidation process is specifically designed to help you understand what happens during a CVL, remove confusion, and move through each stage as easily as possible.
A quick recap of what we’ll do for the liquidation:
- Our team will provide professional advice and guidance on your company’s situation and options for company closure.
- We’ll contact creditors, including secured lenders and Crown creditors, before liquidation and take over all dealings with your company’s creditors during liquidation.
- We’ll manage and assist you with the necessary formalities and documents needed to place your company into a CVL. Including preparing the Statement of Affairs outlining your company’s financial situation and required reporting to your creditors.
- We handle the closure from start to finish, ensuring the process is efficient and compliant.
Contact us Today
Being the director of an insolvent company can be confusing and stressful. Our five insolvent liquidation stages are specifically designed to help you understand what happens during a CVL, remove confusion, and move through each stage as easily as possible.