insolvency wilson field

Debt Free Dave – Looks at Creditors Voluntary Liquidation (CVL)

Authored by Phil Meekin

Phil Meekin

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Approximate read time: 1 minute

Creditors Voluntary Liquidation Video transcription

Meet Dave.

Dave owned a company, D Widgets Ltd, which became insolvent due to bad debt, and Dave didn’t know what to do.

He understood that as a director, he had an obligation not to knowingly trade an insolvent company.

Additionally, he was offered another job which was an opportunity he didn’t want to miss.

The Solution? A Creditors Voluntary Liquidation organised by Finance 7.

A CVL was the perfect way to bring D Widgets Ltd to an end and was the fastest, easiest way of doing this.

A meeting was called, where the shareholders of D Widgets Ltd agreed to liquidate the company.

The liquidator took control of D Widgets Ltd, which relieved Dave of all responsibilities and pressures. The liquidator agreed all claims with creditors and assisted with the settlement of staff payroll claims. The liquidator had to try to get the best possible price for the assets for the benefit of its creditors.

D Widgets’ assets were sold and the proceeds after liquidation costs were used to make a payment to the creditors.

Dave no longer has to stress about his company and can go for the opportunity he dreamed of, because Finance 7 dealt with it quickly, effectively and professionally.

If you think a CVL is right for your business, contact Finance 7 today, on 0800 0663 721, and regain control of your company’s debt.

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