If your company cannot pay what it owes, there is more than one way out and they are not interchangeable. The right one depends on whether the company is solvent, whether it still trades, what it owns, who is pressing, and how much time you have.
Some of these we handle and some we do not — formal insolvency procedures can only be run by a licensed insolvency practitioner. They are all here anyway, because you cannot choose sensibly between options you have not seen.
The options compared
| Route | Suits a company that is | Who runs it | Typical cost | Typical timescale | What happens to the debts |
|---|---|---|---|---|---|
| Sale of the company | Carrying liabilities but with something an acquirer wants | You, through us | Fixed fee, payable only on completion | 2–3 weeks | Stay with the company under new ownership |
| CVL | Insolvent, ceased or ceasing to trade | Licensed insolvency practitioner | £3,000–£7,000+ | 1–2 weeks to appoint | Assets realised and shared out; the rest written off at dissolution |
| MVL | Solvent, able to pay everything within 12 months | Licensed insolvency practitioner | £1,500–£4,000+ | Weeks to months | Paid in full; surplus to shareholders, often at capital rates |
| CVA | Insolvent but viable, still trading | Insolvency practitioner supervises; you keep running it | Set-up plus ongoing fees | 3–5 years | Part paid over time; needs 75% creditor approval |
| Administration | Insolvent, with a business worth rescuing | Licensed insolvency practitioner | Substantial | Up to 12 months | Business or assets sold; claims dealt with in the administration |
| Compulsory liquidation | Insolvent, and a creditor has petitioned | Official Receiver | Creditor pays the deposit | Weeks from petition | As a CVL, but on their timetable |
| Strike off | Dormant, nothing owed | You, via Companies House | £44 | 3–4 months | Nothing. Creditors object and it fails |
Roughly, which is which
- Solvent, want the reserves out — MVL, and get the tax advice first
- Insolvent, nothing left — CVL
- Insolvent but the business actually works — CVA or administration
- A petition has been advertised — talk to an insolvency practitioner today
- Dormant and clean — strike off
- Carrying liabilities, still worth something to somebody — a sale may be available
Two things the table cannot show
No route touches a personal guarantee. If you guaranteed a company debt, every option above leaves that in place.
Your conduct as a director gets looked at either way. In any formal procedure, whoever is appointed reports on how the company was run. That does not change because you resigned or sold.
Not sure which one you are in?
Send us the figures. We will tell you which routes are realistically open, including the ones we have no part in. There is no charge for that conversation.