Voluntary Liquidation

Voluntary Liquidation

Non-technical outline

Creditors’ voluntary liquidation occurs where the shareholders, sometimes at the directors’ request, decide to place an organization into liquidation as a result of it's insolvent.

A licensed insolvency practitioner has given you this because you, or your business, may be owed cash by a corporation that's in creditors’ voluntary liquidation.

This guide aims to help you understand your rights as a creditor and to describe how best these rights will be exercised. It's meant to relate only to England and Wales. It is not an exhaustive statement of the relevant law or an alternative choice to specific skilled or legal recommendation.

We have made each effort to make sure that the guide is accurate, however we cannot settle for responsibility for the consequences of any action you take in reliance on its contents. If, having read the guide, you remain in any doubt regarding your rights, you must consult a licensed insolvency practitioner or a solicitor.

Depending on the circumstances of the case, creditors who play an energetic role in an insolvency will build a significant difference to how abundant the insolvency practitioner can be in a position to recover for them. We hope that you may browse this guide fastidiously and think about whether taking an active role as a creditor in this case may profit you or your customer.
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