Creditors Voluntary Liquidation FAQs

The process of creditors’ voluntary liquidation involves the appointment of a liquidator, who will investigate the company’s affairs, sell its assets, and distribute the proceeds to the company’s creditors.

During a CVL, the company’s employees will typically be made redundant, and will be entitled to claim any unpaid wages or redundancy pay from the government’s Redundancy Payments Office.

Company directors face potential liability for wrongful trading or other misconduct that led to the company’s financial woes during a CVL. They may also be obligated to assist the liquidator in investigating the company’s affairs.

In a Creditors’ Voluntary Liquidation (CVL), creditors are prioritized and compensated from the proceeds of asset sales according to that ranking. Secured creditors, such as banks, typically take precedence, followed by unsecured creditors, such as suppliers and employees.

During a CVL, the company’s shareholders will typically receive nothing, as the proceeds of the sale of the company’s assets are used to pay the company’s creditors.


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  1. Trusted Source – .GOV- Arrange liquidation with your creditors