Browse all FAQs

• What is the difference between a Creditors' Voluntary Liquidation (CVL) and a Members' Voluntary Liquidation (MVL)?

  A Creditors' Voluntary Liquidation (CVL) is used when a company is insolvent—meaning it can no longer pay its debts as they fall due. While the directors initiate the process, it’s ultimately approved by the company’s creditors. It provides an orderly way to wind up the company’s affairs, protect creditors’ interests, and ensure legal compliance.
  
  A Members’ Voluntary Liquidation (MVL), on the other hand, is for solvent companies. This is typically used when shareholders want to close the business—often because it has reached the end of its useful life or completed its purpose—and extract the remaining value in a tax-efficient way.
  
  At Liquidate My Business, we handle both CVLs and MVLs with speed, care, and competitive pricing. If you’re unsure which route is right for your company, we’re here to help.
  
  Get a fast, confidential quote today to start the process.

• How does the Creditors' Voluntary Liquidation (CVL) process work?

  At Liquidate My Business, we make the liquidation process simple, straightforward, and fully remote: no in-person meetings required and we prepare all the paperwork for you!
  
  Here’s how it works:
  
  Directors’ Resolution: Company directors pass a resolution to place the company into liquidation. A shareholders’ meeting is then called (typically with 14 days' notice, though this can be shortened if 90% of shareholders agree). Trading usually stops at this point.
  
  Creditor Reporting: A report is prepared for creditors, including a Statement of Affairs—this is a snapshot of the company’s assets and liabilities, along with a summary of events that led to insolvency.
  
  Creditors’ Meeting: A virtual creditors’ meeting (often just a phone call) is held immediately after the shareholders’ meeting to approve the liquidation and formally appoint a liquidator.
  
  Control Transfers to the Liquidator: Once appointed, the liquidator takes over the company. Directors' powers cease from this moment.
  
  Asset Realisation: The liquidator will seek to sell any company assets and recover any money owed, with the goal of maximizing returns for creditors.
  
  Creditor Distributions: After covering the costs of liquidation, any remaining funds are distributed to creditors with approved claims.
  
  Final Steps: When all duties are complete, the liquidator issues a final report and closes the case.
  
  Company Dissolution: The company is formally dissolved and removed from the Companies House register a few months later.
  
  We guide you every step of the way and aim to complete the process as smoothly and efficiently as possible.
  
  Request a free, no-obligation quote to get started.

• What steps are involved in a Members' Voluntary Liquidation (MVL)?

  At Liquidate My Business, we streamline the MVL process—it's fast, efficient, and can be handled entirely remotely. Here’s how it works:
  
  Board Resolution: Directors resolve to wind up the company and call a shareholders' meeting. This usually requires 14 days' notice, but with agreement from 90% of shareholders, it can be shortened to just 1 day. The company typically ceases trading at this stage.
  
  Declaration of Solvency: Directors swear a Declaration of Solvency before a solicitor. This confirms the company can pay its debts in full, typically within 12 months, and includes a statement of assets and liabilities.
  
  Members’ Meeting: Shareholders approve the liquidation and appoint a licensed insolvency practitioner as liquidator.
  
  Transfer of Control: Upon appointment, the liquidator takes over full control of the company. Directors' powers cease.
  
  Asset Realisation: The liquidator sells any remaining assets and prepares the company for closure.
  
  Settling Debts & Distributions: After settling all liabilities—including any final Corporation Tax—the remaining funds are distributed to shareholders. Members usually sign indemnities to allow early distribution of funds.
  
  Finalisation: The liquidator completes all statutory duties and prepares a final account for shareholders.
  
  Dissolution: Three months later, the company is officially dissolved and struck off the Companies House register.
  
  Have questions or ready to proceed?
  
  Get a quick MVL quote today — it's fast, affordable, and expertly handled.

• How much does liquidation cost?

  At Liquidate My Business, we believe in delivering fast, affordable service without compromising on quality. Our fees for insolvent company liquidations start from just £1,750 + VAT, including all necessary disbursements—making us one of the lowest-cost providers in the UK.
  
  Unlike many firms charging over £5,000, we keep costs low through our streamlined processes and online systems.
  
  In many cases, our fees can be paid from company assets, not personally by directors.
  
  Get your instant quote now — it’s quick, confidential, and obligation-free.

• Can I still be a director of another company?

  The simple answer is yes, but you must be aware of the following automatic restriction in a CVL. Under Section 216 of the Insolvency Act 1986, the officers are barred from acting as a director or in the formation, promotion or management of another business with a name or trading style so similar as to that of the liquidated company, as to imply association, for 5 years.
  
  The purpose of the provision is to ensure unscrupulous persons do not open consecutive businesses and benefit from ongoing goodwill at the expense of creditors. It also helps prevent creditors mistakenly providing credit facilities to a new business, in the belief it is an established Company.
  
  There are provisions, however, to overcome the above restriction and allow you to use the same or similar name. Please contact us to find out more.

• Can I liquidate a business with a Bounce Back Loan?

  Yes, you can.
  
  The Bounce Back Loan (BBL) scheme was there to assist businesses through the Covid-19 pandemic and was an unsecured loan to the business, with no personal guarantees. A BBL is treated in the same way as any other unsecured loan.
  
  If you are concerned about the eligibility or misuse of a BBL, you should call us or chat to us online and discuss the matter. We can advise you on the options available and how best to proceed.

• How are employees affected when a company undergoes liquidation?

  If the employees are not transferred to another business, all employees will be made redundant upon liquidation – this includes employed directors. They will be provided with details of how to claim the monies due to them from the Redundancy Payments Office, a government department. A claim is made directly online with the National Insurance Fund who will make the payments.
  
  Contact us now to find out more and see how much you and your employees could be entitled to!
  
  See https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you for more information.

• What if I have received a winding up petition?

  If you have received a Petition, it is not too late to voluntarily wind up your company. The creditor who issued the Petition (often HMRC) may be willing to allow you to place the company into a voluntary liquidation, saving their own legal fees and avoiding the additional costs associated with a compulsory winding up process through the courts, which inevitably leads to a lower return to the creditors.
  
  Contact us now to speak to a Licensed Insolvency Practitioner for guidance.

• How do I know if my company is insolvent?

  If your business fits into any of the following scenarios, then your business is legally insolvent – the first 2 are the most common;
  
  1. Cashflow – you are unable to pay your debts as they fall die for payment;
  
  2. Balance Sheet – your liabilities are greater than your assets;
  
  3. Judgement – you have failed to satisfy a judgement against the company
  
  4. Statutory Demand- you have failed to pay the sum due from a Statutory Demand (for over £750)

• How are payments processed on the website?

  All payments on the website are processed securely through third-party processor Stripe. We do not hold any of your payment details. You will receive a receipt by email for any payments made.
  
  Alternatively, payments can be made using your card over the phone or by bank transfer. Call us on 0330 1271 899.

• LiquidateMyBusiness.com – more

  LiquidateMyBusiness.com is dedicated to providing you with a super fast and easy way to obtain a very low-cost quote for liquidating your company voluntarily. Our Insolvency Practitioners are fully licensed with the Insolvency Practitioners Association (IPA) and are members of R3, The Association of Business Recovery Professionals. They have many years’ experience in helping companies through the liquidation process – all sizes and industries. Our Insolvency Practitioners have been appointed liquidators thousands of times.
  
  Due to our processes and online system, we able able to offer such low prices. Go and get a quote now to start your liquidation process or call us on 0330 1271 899.