Creditors Voluntary Liquidation

What does it mean for a business to enter Voluntary Liquidation?

Liquidation is fundamentally the process of ending a company’s existence, the liquefaction of its structure and assets, if debts exist there will be proportionate distributions in order of priority and precedence of the liquidated assets.  By Voluntary Liquidation,  it is meant that this process is entered into voluntarily, rather than by court order.  By initiating the liquidation process, the power is placed back in your hands.

Creditors Voluntary Liquidation (CVL) occurs when a business is no longer able to pay its debts as and when they fall due, and the shareholders come to an agreement under a special resolution that the company is to be wound up. The company must be insolvent in order to perform a CVL. Once a company becomes insolvent it may be the only option to satisfy the debts in a feasible manner, without waiting for the liquidation to be appointed by the court which would result in an official liquidation.

No-one wants to see a business fail, but sadly this happens to many people around Australia every year.

If you do decide that to take this option, you will be relieved to know that it can be quick, simple and inexpensive.  The professional team at Credits Voluntary Liquidation can get the ball rolling for you.

To begin the liquidation process, call Creditors Voluntary Liquidation on 1300 60 70 60