What Happens to Business Contracts During a CVL? When a company enters a Creditors’ Voluntary Liquidation (CVL), its financial position has reached a point where it can no longer continue trading. This naturally raises questions about what happens to existing business contracts, including agreements with suppliers, customers, landlords, and service providers. Understanding how contracts are treated during a CVL can help directors prepare for the process and manage expectations. In most cases, business contracts do not automatically terminate the moment a company enters liquidation. However, the appointment of a liquidator significantly changes how those contracts are handled. Many commercial contracts include insolvency clauses, which allow the other party to terminate the agreement if the company enters liquidation. This means that once a CVL begins, suppliers or service providers may choose to end their contracts immediately. Learn More - https://medium.com/@simpleliquidationinuk/what-happens-to-business-contracts-during-a-cvl-530070933f29

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What Is the Role of an Insolvency Practitioner in a CVL? An Insolvency Practitioner (IP) plays a key role in a Creditors’ Voluntary Liquidation (CVL), acting as the appointed liquidator responsible for managing the entire process. Once engaged, the IP takes control of the company, assesses its financial position, and ensures all actions are carried out in the best interests of creditors. This includes realising company assets, distributing funds in accordance with UK insolvency law, and handling all communications with creditors. The IP also reviews the conduct of directors prior to insolvency and submits a report to the Insolvency Service. Their role is to ensure the liquidation is handled professionally, transparently, and in compliance with legal requirements. Simple Liquidation is a trading name of Leading Business Services Limited, where all cases are handled directly by licensed Insolvency Practitioners authorised by the ICAEW and IPA, ensuring directors receive clear, regulated advice throughout the process. Learn More - https://www.simpleliquidation.co.uk/about-us/

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Can Directors Start a New Business After Liquidation? Yes, in many cases directors can start a new business after their company has gone into liquidation. Liquidation closes the company itself, but it does not automatically stop a director from being involved in another business. However, there are important rules to consider. During liquidation, the appointed liquidator reviews the conduct of the company’s directors. If there is evidence of misconduct such as wrongful trading, fraud, or failing to keep proper records, the director could face investigation or even disqualification from acting as a director for a period of time. Another key restriction relates to company names. Under Section 216 of the Insolvency Act 1986, directors cannot use the same or a very similar company name for a new business within five years unless specific legal procedures are followed. If there has been no misconduct and the rules are followed, many directors successfully start new businesses after liquidation. Seeking professional advice can help ensure the new venture is set up correctly and within the law. Learn More - https://www.simpleliquidation.co.uk/

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Is Creditors’ Voluntary Liquidation Better Than Company Dissolution? When a limited company in the UK is no longer viable, directors must decide how to close the business in a compliant and responsible way. Two options that are often considered are Creditors’ Voluntary Liquidation (CVL) and company dissolution. While both methods lead to the closure of a company, they serve very different purposes and are used in different financial circumstances. Understanding the key differences between these two procedures can help directors choose the correct route when dealing with an insolvent company. Company dissolution, sometimes referred to as striking off, is a relatively simple process used to remove a company from the Companies House register. Directors can apply for dissolution if the company is no longer trading and has no significant debts. To qualify for dissolution, the company must meet several conditions. It should not have traded or changed its name within the previous three months, and it must not be involved in any legal proceedings or insolvency procedures. Directors submit a formal application to Companies House, and if no objections are raised, the company is eventually struck off the register. Learn More - https://simpleliquidationi.wixsite.com/simple-liquidation-i/post/is-creditors-voluntary-liquidation-better-than-company-dissolution

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Step-by-Step Guide to the Creditors’ Voluntary Liquidation Process When a limited company in the UK can no longer pay its debts, directors must consider their legal responsibilities and the options available to them. One common route for insolvent companies is Creditors’ Voluntary Liquidation (CVL). This formal insolvency procedure allows directors to close a company in an orderly and compliant manner while ensuring that creditors are treated fairly. The first stage occurs when directors determine that the company is insolvent, meaning it cannot pay its debts as they fall due or its liabilities exceed its assets. Signs of insolvency may include mounting creditor pressure, unpaid HMRC liabilities, or the inability to meet supplier payments. Once insolvency becomes clear, directors have a legal duty to prioritise the interests of creditors rather than shareholders. Continuing to trade while knowingly insolvent may risk allegations of wrongful trading, so seeking professional insolvency advice at an early stage is important. Learn More - https://simpleliquidationinuk.wordpress.com/2026/03/12/step-by-step-guide-to-the-creditors-voluntary-liquidation-process/

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Can Employees Claim Redundancy If Their Company Goes Bust? When a company becomes insolvent and enters liquidation, employees often face uncertainty about their jobs, wages, and financial security. One of the most common questions is whether employees can claim redundancy pay if their employer goes bust. In the UK, employees may still be entitled to certain payments even if the company cannot afford to pay them directly. If a business enters liquidation, its operations usually stop and employees are typically made redundant. Redundancy occurs because the employer can no longer continue trading or provide work. When a company has insufficient funds to pay staff their full entitlements, employees may be able to claim some payments from the government through the Redundancy Payments Service (RPS). The RPS is part of the Insolvency Service and helps employees recover certain unpaid amounts when their employer becomes insolvent. Learn More - https://medium.com/@simpleliquidationinuk/can-employees-claim-redundancy-if-their-company-goes-bust-73d57ad70f78

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Why More UK Businesses Are Entering Liquidation in 2026 In recent years, the UK business environment has become increasingly challenging. As 2026 progresses, a noticeable rise in company liquidations is being reported across multiple sectors. While liquidation has always been part of the natural business cycle, several economic and regulatory pressures are contributing to a higher number of businesses closing down. Understanding the reasons behind this trend can help directors recognise early warning signs and make informed decisions about the future of their companies. One of the most significant pressures facing businesses in 2026 is the continued impact of higher interest rates. Over the past few years, borrowing costs have increased as the Bank of England sought to control inflation. Many businesses that relied on loans or overdrafts during earlier economic downturns are now facing higher repayment costs. Learn More - https://simpleliquidationinuk.blogspot.com/2026/03/why-more-uk-businesses-are-entering.html

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Can I Buy Back Assets During or After a Liquidation? When a company enters liquidation in the UK, its assets are sold by the appointed liquidator to repay creditors. Directors or connected parties can buy back assets, but strict rules apply to ensure the sale is fair and at market value. The liquidator must act in the best interests of creditors and obtain the best possible price. In some cases, independent valuations are required, and transactions are carefully documented. Buying assets after liquidation may also involve additional legal considerations. Understanding the regulations and seeking professional advice is essential before attempting to repurchase any company assets. Learn More - https://www.simpleliquidation.co.uk/can-i-buy-back-assets-during-or-after-a-liquidation/

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What Is a Director Conduct Report During Liquidation? When a company enters liquidation in the UK, one of the most important parts of the process happens behind the scenes: the preparation and submission of the director conduct report. This report plays a crucial role in ensuring transparency, accountability and proper oversight during a liquidation. Yet for many directors, the term can feel worrying or even intimidating, especially if it is their first time facing financial difficulty with a company. Understanding what a director conduct report is, why it is required and what the Insolvency Service does with it can help remove the anxiety surrounding the process. In reality, most directors have nothing to fear as long as they have acted reasonably, responsibly and in good faith throughout the life of the business. Learn More - https://www.simpleliquidation.co.uk/what-is-a-director-conduct-report-during-liquidation/

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Why UK Furniture Brand Slzzp Entered Administration The entry of UK furniture brand Slzzp into administration highlights the continued financial strain facing retailers operating in a challenging and evolving market. While furniture retail has historically been sensitive to economic cycles, recent years have introduced a combination of pressures that have proven particularly difficult for newer and growth-focused brands to manage. Slzzp’s administration is not an isolated incident. Instead, it reflects wider structural issues within the furniture and homeware sector, including weakened consumer demand, rising operating costs, and cash flow challenges linked to long sales cycles and high overheads. Learn More - https://www.simpleliquidation.co.uk/why-uk-furniture-brand-slzzp-entered-administration/

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Who Pays for Staff Redundancy When a Business Goes into Liquidation? When a business enters liquidation, one of the most pressing and sensitive issues is what happens to employees. For many directors, concerns around staff redundancy, unpaid wages, and legal obligations can be a major source of stress, particularly when cash flow has already dried up. Employees, on the other hand, often face uncertainty about whether they will be paid what they are owed. Understanding who is responsible for paying staff redundancy when a company goes into liquidation is essential for both directors and employees. The answer depends on several factors, including the financial position of the company, the type of liquidation, and the nature of the employees’ claims. Learn More - https://www.simpleliquidation.co.uk/who-pays-for-staff-redundancy-when-a-business-goes-into-liquidation/

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What Happens When I Owe Money to My Own Company? It is not uncommon for directors or shareholders to owe money to their own company. This situation often arises through director’s loans, drawings taken in excess of salary or dividends, or business expenses that were never properly reimbursed. While this may seem manageable when a company is trading normally, it can become a serious issue if the business faces financial difficulty or enters liquidation. Understanding what happens when you owe money to your own company is essential, particularly if insolvency is a possibility. The way this debt is treated can have significant legal and financial consequences for directors. Learn More - https://www.simpleliquidation.co.uk/what-happens-when-i-owe-money-to-my-own-company/

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