Visit our dedicated small business restructuring site for small business owners facing financial distress.
Creditors Voluntary Liquidation
Ensure fair asset distribution and orderly closure.
A Creditors Voluntary Liquidation (CVL) can offer a controlled exit. Consulting with a liquidator early on allows you to explore all options and make the best choice for your company and stakeholders.
A Creditors’ Voluntary Liquidation (CVL) is a process that wraps up an insolvent company’s operations and allocates its assets to creditors. This is the most frequently used form of liquidation, initiated by the company's directors and shareholders.
A CVL may take place when:
Shareholders opt to liquidate the company and assign a liquidator.
Creditors agree to liquidation following voluntary administration or the conclusion of a deed of company arrangement.
Is CVL the right move?
A Creditors' Voluntary Liquidation (CVL) may be a good option when:
Business is Beyond Saving
Voluntary administration may be too costly, making CVL a more practical option.
No Cash at Bank
With no funds to repay debts, CVL allows closure without further financial strain.
No Valuable Assets
Without assets to sell, CVL may be the only route to settle remaining obligations.
Operating at a Loss
If profits can’t cover costs, continuing to trade may be unrealistic.
Browse TTJ's
Tools & Resources
Our Myths & Facts bankruptcy guide serves as your compass, helping to steer clear of common misunderstandings and chart a course towards financial recovery.
Bankruptcy
Myth-buster
Is your business facing financial challenges? Discover how Small Business Restructuring (SBR) can help you reduce debt by up to 80% and keep your business operational.
SBR eBook for Small Business Owners
Small Business Restructuring can help your clients slash debts by up to 80%, unlock tax relief and future-proof their businesses. This eBook offers a step-by-step guide to SBR.
SBR eBook for Accountants
Director Penalty Notices (DPNs) can have serious financial consequences, holding directors personally liable for unpaid company tax debts. This eBook explains how to respond, and strategies to protect your assets.
DPN eBook for Directors
Insolvency is tough, but it's not the end. With the right guidance and a proactive approach, you can navigate through this and emerge stronger.
Insolvency
Fact-checker
Complete guide to bankruptcy for sole traders in NSW. Licensed bankruptcy trustee Thyge Trafford-Jones explains eligibility, process, asset protection & alternatives
Sole Trader Bankruptcy in NSW: Complete 2025 Guide by Licensed Trustee
Find out how TTJ Advisory provides expert business restructuring services in Sydney, helping companies navigate distress, reduce costs, restructure debt, and implement turnaround strategies. Led by licensed insolvency practitioner Thyge Trafford-Jones.
Guide to Business Restructuring Services in Sydney
Slide to browse >>>
Frequently Asked Questions
Read Our Blog
Choose FAQ Category Below
- 01
- 02
- 03
- 04
- 05
The Creditors’ Voluntary Liquidation Process
01
Liquidator is Appointed
The Creditors’ Voluntary Liquidation (CVL) process begins when company members approve liquidation and appoint TTJ Advisory as the licensed liquidator.
02
Notify ASIC & ATO
Once appointed, the liquidator quickly assumes control, notifying ASIC, the ATO, and relevant government offices to ensure compliance and transparency.
Contacting Creditors
The liquidator publishes formal notices and contacts creditors directly, informing them of their rights and inviting them to submit proof of debts and relevant information on the company’s affairs.
03
04
Asset Sale & Distribution
The liquidator secures and sells company assets, then distributes the proceeds to creditors according to the designated priority order.
05
Company Deregistration
The final step in the Creditors' Voluntary Liquidation is to deregister the company with ASIC, at which point the company ceases to exist, and most remaining debts or claims are void.
