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What Happens if a Person Claims Insolvency and Does Not Have the Assets to Clear?

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Leading UK
What Happens if a Person Claims Insolvency and Does Not Have the Assets to Clear?

It’s hard enough coming to terms with the fact that, as a company, you are struggling with debts and have been classified as insolvent. Usually a Creditors Voluntary Liquidation (CVL) is the right option and if the company has assets it can sell, i.e. machinery, equipment or even premises, they can be sold to pay creditors. But what happens if there are no assets that can be realised? Does a CVL still apply? Who pays the insolvency practitioner’s (IP) fees?

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