CVL vs administration vs strike off
Choosing how to close or rescue a company comes down to a few clear questions, and getting it right matters because the wrong route can create cost and personal risk. The first question is whether the company can pay its debts: a solvent, debt-free company can often be closed cheaply by strike off, while an insolvent one should not be. The second is whether the underlying business is viable: if it is, administration or a Company Voluntary Arrangement may rescue it; if it is not, an orderly Creditors Voluntary Liquidation is usually the right close. The third is whether you are under immediate creditor pressure such as a winding-up petition, because that points towards the protection of administration. This chooser walks you through those questions and suggests the route most likely to fit, which a Licensed Insolvency Practitioner can then confirm on a free call.
Answer these
Indicative guidance only. The right route depends on the full picture, which a practitioner will assess.
Common questions
When is strike off the right route?
Strike off via DS01 is only suitable for a solvent or dormant company with no significant debts. If the company owes money, creditors and HMRC can object, and it does not clear the debts. See company strike off.
When is administration better than liquidation?
Administration suits a viable business that needs protection from creditors while a rescue or sale is arranged, because the moratorium stops creditor action. Liquidation simply closes the company. See administration.
Speak to a Licensed Insolvency Practitioner
Tell us briefly what is happening and we will arrange a free, confidential, no obligation call with a Licensed Insolvency Practitioner. The earlier you get advice, the more options you usually have.
Free, confidential and no obligation. We are an independent information service and introduce directors to a Licensed Insolvency Practitioner. This is general information, not regulated advice.