When your company is facing unmanageable debts, and it’s clear things aren’t turning around, it’s natural to feel overwhelmed, especially as a director under pressure from creditors and cashflow worries. If that sounds familiar, you’re not alone. A Creditors’ Voluntary Liquidation (CVL) might be the right step forward.

I’m Nick, a Business Recovery and Insolvency consultant with over 30 years’ experience. I’ve helped hundreds of directors deal with difficult situations like this. A Creditors’ Voluntary Liquidation (CVL) might feel like a big step, but in many cases, it’s the most responsible way to move forward.

It’s not failure — it’s a legal process that can stop the pressure, deal with debts properly, and give you space to reset.

How does a CVL work?

If your business can’t carry on and is insolvent, a CVL is a formal process that allows you to close the company down properly.

Here’s how I guide you through it:

• We start with a conversation.
  A free, confidential chat where I listen, understand your position, and help you make sense of your options. If a CVL is right, I’ll explain exactly how it works. If there’s a better route, we’ll look at that too.
• If you proceed, everything is handled for you.
  I’ll help you appoint a licensed Insolvency Practitioner to handle the legal side — preparing documents, notifying creditors, and guiding the company through closure.
• Creditors are informed, but the pressure stops.
  A virtual meeting is usually held where creditors are updated and can raise questions. You’re supported throughout.
• Staff are treated fairly.
  Employees are made redundant, but many are entitled to claim redundancy pay, unpaid wages, and holiday pay from the government, not from you personally.
• Assets are dealt with fairly.
  Company assets are sold to repay creditors as far as possible, and the company is then formally closed.
• The company is closed, and you can move forward.
  Once everything is wrapped up, the company is dissolved. And while it might feel like the end, for many directors, it’s actually a new beginning — with the weight finally lifted.

I’ll guide you through each step, answer your questions, and make sure you’re supported from start to finish.

How can a CVL help you?

Most directors I speak to don’t come to me asking for a CVL. They come with worry, sleepless nights, and a sense that things are slipping out of their control. My job is to help them understand their options — and sometimes, a CVL is the right one.

Here’s how it can help:

• It stops the pressure.
  Bailiffs, creditor calls, HMRC demands — they don’t just vanish, but the noise quiets down quickly once the process begins, and the Insolvency Practitioner will take over these communications.
• It gives you space to breathe.
  No more waiting for the next letter or threat. You’ll know what’s happening, when, and why — and that alone brings huge relief.
• It clears company debt.
  A CVL brings the company to a proper legal close, and most unsecured debts — like trade suppliers, HMRC arrears, bounce back loans, and unpaid invoices — are written off as part of the process.
• It treats your staff fairly.
  Redundancy is tough, but employees may be entitled to payments from the government, and I’ll explain how that works.
• It gives you a way forward.
  For many directors, this isn’t the end — it’s the moment things start making sense again.

I don’t make assumptions. I help you work out what’s best for you, and if a CVL is the answer.

Can you restart your company? (Pre-pack)

In some cases, yes — and it’s more common than you might think.

If the company is no longer viable but the core of the business still has value — your customers, your contracts, your team — it may be possible to sell those assets as part of the liquidation and carry on trading through a new company. This is often called a pre-pack liquidation.

It’s not about walking away from responsibility — it’s about doing things properly, with transparency, and giving the business a second chance under a clean structure.

If this route is suitable, it could allow you to:

• Buy back company assets (at market value)
• Keep important contracts and relationships
• Retain jobs and key staff
• Start again — without the historic debt weighing you down

It’s not always the right fit, and there are rules to follow, but I’ll explain what’s involved and help you explore whether this could work for your situation.

Questions directors often ask me about CVL.

Will I be personally liable for the company’s debts?

Usually not. Most company debts are written off in a CVL, unless you’ve signed a personal guarantee or there are issues like wrongful trading. I’ll go through everything with you so you know exactly where you stand.

Will I be investigated?

There is always a standard director conduct review — but unless you’ve done something knowingly wrong, there’s usually nothing to worry about. I’ll explain what to expect and help you prepare.

What happens to my staff?

They’re made redundant and can often claim redundancy, unpaid wages, and holiday pay from the government. This isn’t something you have to pay personally.

Can I run another company?

Yes. You can be a director again, and many people go on to start new ventures. There are rules about using the same name, but I’ll explain what applies to your situation.

Can I reuse the company name?

Sometimes, yes — but there are strict legal rules (under Section 216 of the Insolvency Act). Don’t guess — I’ll give you clear advice on what’s allowed.

How long does it take?

You can start the process within a week or two. While full closure takes longer, the stress often eases much sooner once things are in motion.

How much does a CVL cost?

The cost varies depending on your company’s situation, but in many cases it can be paid from company assets. I’ll give you a clear breakdown before anything is agreed.

What’s the first step?

A confidential, no-pressure conversation.

You don’t need to commit to anything, and you certainly don’t need to figure everything out on your own. My job is to help you understand your options and give you the support to make an informed decision.

Whatever your situation, I’ll meet you with honest advice, no judgment, and the experience to guide you through it. Most directors tell me they leave the first call feeling clearer, lighter, and finally able to see a way forward.