Creditor’s Voluntary liquidation is a legal process that “winds up” an insolvent company by selling assets and property to repay debts.By the end of the voluntary liquidation process, the company will have stopped trading and will cease to exist.
Company administration is a formal procedure in which an insolvency practitioner is appointed to act as the administrator of an insolvent company with the goal of bringing about a recovery. By the end of the administration the company can be also liquidated.
When a struggling business appears to be viable with the prospect of becoming profitable again, and the directors are willing to continue, a company voluntary arrangement (CVA) may be an ideal way to protect against legal actions taken by creditors.
A member’s voluntary liquidation, also called a MVL, is a the process of closing down a solvent company in a cost-effective way. This process is more tax-efficient that simply closing down your company via a strike-off and taking out the assets as dividends.
