Option two
Close your company safely, and stay in control
If the company cannot continue, closing it yourself is almost always better than waiting for a creditor to close it for you. You keep control of the timing and the process is far calmer.
Short answer
A Creditors' Voluntary Liquidation, or CVL, is the directors' own decision to close an insolvent company in an orderly way. You start it, so you control the timing. The licensed insolvency practitioner, Mark Bassford FCA, is appointed liquidator, deals with creditors and the assets, and the company is wound up. It is the calm alternative to a compulsory winding-up.
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IPA member
25+ years experienceFree first conversationFace-to-face or ZoomIs this right for you?
- The company cannot pay its debts and there is no realistic route back.
- You would rather act now than wait for a creditor to petition.
- Creditor pressure is taking over your working week.
- You want the company closed properly, with the paperwork done correctly.
- You may want to keep trading the underlying business through a new company.
What it means for you personally
- As a director you must act in the creditors' interests once the company is insolvent. Acting early helps you show that you did.
- A CVL is not bankruptcy, and it does not by itself stop you being a director again.
- Personal guarantees survive the company. We look at those with you rather than leaving them to emerge later.
- Director's loan accounts are an asset of the company and the liquidator will ask about them. We explain that before you start, not after.
How it works, step by step
- 1
A free conversation with Michael
We check that a CVL really is the right route. Sometimes it is not, and we say so.
- 2
We gather the position
Assets, creditors, employees, leases and any personal exposure. You get a clear picture of what liquidation means in your case.
- 3
The licensed insolvency practitioner is appointed
Mark Bassford, FCA, takes the formal appointment as liquidator. Shareholders pass the resolution and creditors are notified.
- 4
The liquidator takes over
Creditor correspondence stops coming to you and goes to the liquidator. Assets are dealt with and the company is wound up.
- 5
You move on
Employees are pointed to the redundancy service where they qualify, and you know where you stand personally.
Who does what
- Michael O'Connor advises you, prepares the case and remains your point of contact throughout.
- Mark Bassford, FCA, Licensed Insolvency Practitioner, carries out the formal appointment and acts as liquidator. Michael is not a licensed insolvency practitioner.
- Tony Sampson, MIPA, FABRP, advises on any legal or creditor issue that arises.
Fees and what they cover
- The first conversation is free, confidential and informal.
- A liquidator's fees are usually met from the company's assets where there are any. Where there are not, the position is explained to you in writing before you commit.
- Costs depend on your situation and are explained in writing before anything starts. The first conversation is free.
Common questions
What is the difference between a CVL and being wound up by the court?
A CVL is your decision and your timing. A compulsory winding-up is forced on the company by a creditor's petition, usually with a frozen bank account and far less control. Directors who act first almost always have a smoother process.
Can I start a new company afterwards?
In most cases yes. There are rules about re-using the old company's name and about buying assets from the liquidator, and we go through them with you before anything happens.
Will I be personally liable for the company's debts?
Usually not, because a limited company is separate from its directors. The exceptions are personal guarantees, overdrawn director's loan accounts, unpaid share capital and certain wrongful trading findings.
What happens to my employees?
Employment usually ends on liquidation. Employees can claim redundancy pay, notice and unpaid wages from the government's redundancy payments service, and the liquidator gives them the details they need.
How long does a CVL take?
The company stops being your day-to-day problem as soon as the liquidator is appointed, which can be quick. Winding the company up fully takes longer, and depends on what has to be dealt with. Typically a few weeks; we confirm the timetable at the first meeting.
Do I have to tell my bank or my landlord first?
Not before you take advice. Part of the planning is the order in which people are told, and we go through that with you.
Does talking to you start the process?
No. Nothing happens until you say so.
Reviewed by Michael O'Connor, M.A. (Cantab), MABRP
Director and lead adviser. Last reviewed September 2026.
The other options
Talk it through before you decide anything.
Free, confidential and informal. Michael replies personally, usually the same day.
Clear options for directors under pressure. One adviser, from the first call to the finish.
This page is general information, not legal or financial advice.