Creditors' Voluntary Liquidation
A CVL is the most common formal insolvency procedure for insolvent companies. It allows directors to close the company in an orderly, legally compliant manner, maximising returns for creditors and protecting directors from the consequences of compulsory liquidation.
This solution is suitable when:
Company Voluntary Arrangement
A CVA is a formal agreement between a company and its creditors to repay a proportion of its debts over a fixed period, typically three to five years. The company continues to trade throughout the arrangement, allowing it to recover and eventually emerge debt-free.
This solution is suitable when:
Administration
Administration places the company under the control of a licensed insolvency practitioner (the administrator), who takes over management of the business. The primary purpose is to rescue the company as a going concern, or to achieve a better result for creditors than an immediate liquidation.
This solution is suitable when:
Time to Pay Arrangement
A Time to Pay (TTP) arrangement is an informal agreement with HMRC to spread outstanding tax debt over a manageable period. It is not a formal insolvency procedure but is often the first step for companies with HMRC debt that are otherwise viable.
This solution is suitable when: