Liquidation (or ‘winding up’) is the most common type of corporate insolvency procedure. Liquidation is the formal winding up of a company’s affairs, entailing the realisation of its assets and the distribution of the proceeds in a prescribed order of priority.
Company Voluntary Arrangements
A company voluntary arrangement is a procedure which enables a company to put a proposal to its creditors. The proposal if agreed, prevents the creditors taking inforcment action against the company.
Members voluntary Liquidation/ Solvent Liquidation
This procedure is used when a company has ceased to trade, and is solvent. The company has sufficient assets to pay the creditors in full, and return the surplus funds to its shareholders.
Individual Voluntary Arrangements
This is a legally binding agreement -between you and your creditors- to repay your debts.
Most IVA's last for 5 years, but there is no set percentage to be returned to creditors.
Administration is a procedure available to a company that is insolvent, or is likely to become so. This places the company under the control of an insolvency practitioner. The business and assets are then sold by the Administrator.