Creditors Voluntary Liquidation (CVL)
In the case of a Creditors Voluntary Liquidation (CVL) the shareholders or directors of the business pass a resolution to put the company into liquidation because it is insolvent. Either the company cannot pay its debts as they fall due or it has more liabilities than assets. The purpose of the liquidation is to appoint a responsible person who has a duty to collect the company's assets and distribute them to its creditors in accordance with the law. That person is the liquidator, who must be a licensed insolvency practitioner.
For further detail on the debt options for limited companies see:
Or for debt options for sole traders and partnerships click here.