Insolvent liquidation
Liquidation is a process whereby a company’s assets are realised (i.e. turned into cash) and then distributed to its creditors and/or shareholders.
Liquidation is suitable when there is no will or ability to continue to trade, and there is a requirement for the affairs of a company to be wound down. Once the liquidation is over, the company is struck off the register at Companies House and it ceases to exist.
Principally there are two forms of insolvent liquidation; creditors’ voluntary liquidation (CVL) and compulsory liquidation.
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