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In most cases directors have done nothing wrong in the lead-up to a Creditors Voluntary Liquidation (CVL) and are rarely intentionally insolvent. As such they are unaware of any common risk areas.

Once the CVL starts, Liquidators review and make sure any unintentional actions undertaken by directors in the best interests of the company are appropriately dealt with. But your’re probably thinking it’s a bit too late now.

Over the years, What is Liquidation has helped hundreds of solvent companies to liquidate and distribute their assets through the Members Voluntary Liquidation (MVL) process.  

We understand that directors and/or shareholders of solvent companies don’t want to pay high professional fees to a Liquidator to liquidate and ultimately have access to their funds that they are entitled to. That’s why our services are offered at a low cost fixed price.

This is a common scenario that comes past our desk at What is Liquidation. Most directors of businesses will experience some type of failure to varies degrees and for a number of different reasons. The key is to acknowledge that your business is failing and seek professional advice. So, don’t refuse to acknowledge there is a problem and bury your head in the sand, because we often find that the sooner directors seek our advice, the more options are available to potentially save their business.

Before we get into whether creditors should supply a business during the Voluntary Administration (VA) process, let me give you a bit of an understanding about the VA process.

        In a VA, the Voluntary Administrator is empowered by law to assume control of an insolvent company, superseding the powers of its directors and officers, to manage the company’s affairs and deal with its assets in the interests of its creditors.

Any creditor involved with a company that has failed, wants to know their position. This article will shed some light on the order creditors are paid in a Liquidation process. So, that if you are a creditor of a company in Liquidation then you can have an understanding of your chances.

When a company goes into Liquidation, the question on every creditors mind is when will I get the money owed to me and where do I stand.

Insolvency and bankruptcy are two terms that are often closely associated when talking about debt.

Many people often confuse insolvency and bankruptcy, assuming them to mean the same thing. However, while both words, though similar, essentially mean that a company or person is in serious financial trouble, there are key differences between them.

“Does an individual or company owe you money and you’re finding it difficult to get a hold of someone?”
“Have you been chasing an unpaid invoice only to find out that suddenly the number you are calling has been disconnected?"
“Do you suspect the company you’re dealing with may be in Liquidation?”
“What do you need to do to find out?”

Unfortunately, these are some common questions that some business owners may be asking or issues they may face during the running of their business… if this is you, find out how you register or make a claim in a Bankruptcy or Liquidation.

At What is Liquidation, we commonly hear from directors (business owners) of companies in financial difficulties that they regret that they did not seek professional advice or appointed an Insolvency Practitioner earlier.

So, when is the right time to appoint an Insolvency Practitioner?

When a Liquidator is appointed to a company, they have a duty to collect and realise the company’s assets for the benefit of the Liquidation.

In most cases, these assets are subject to company leases, hire purchases or any other finance agreements that typically contain a personal guarantee by company directors. So, what will happen with leased assets in a Liquidation?

The Pros and Cons of a Members Voluntary Liquidation (MVL) vs. Deregistration (Strike-Off)

In the context of Liquidation and Insolvency, the most familiar type of appointment that comes to mind is the Creditors Voluntary Liquidation (CVL). The stigma associated with liquidations can be severely negative, however not much is known about the conducts of MVLs.