Individual Voluntary Arrangements (IVAs) have become increasingly common and are popular with sole traders looking to avoid bankruptcy.A Company Voluntary Arrangement (CVA) works in exactly the same way for limited companies.
A Creditors Voluntary Liquidation (CVL) is agreed by the shareholders when it is clear the company has no future.
This is by far the most common choice for insolvent companies and is relatively inexpensive.
If a company is under pressure from creditors and struggling with cashflow, administration should be considered.
In many situations, a Business Recovery Plan is a very realistic course of action to take.
A well constructed business recovery plan allows a company to improve its cash flow situation and trade out of insolvency. Liquidation can clear all your company's outstanding debts and allow you to move on.