Which insolvency process? CVL, administration, MVL explained
How Senserity tells compulsory liquidation, CVL, administration, MVL and receivership apart from Gazette notices, and why the difference matters.
- Severity
- Critical
- Category
- Legal
- Plan
- Free and above
- Test code
- LEG-021
What this test checks
Works out which formal process a company is in, or has been through, from the categories of the Gazette notices published about it: compulsory winding-up, creditors' voluntary liquidation, administration, members' voluntary liquidation or administrative receivership.
It also reads the order of events. Administration followed by a creditors' voluntary liquidation, for example, means a rescue attempt failed and the company is being wound up.
What a fail looks like
The company is in, or has been through, an insolvent process. Compulsory winding-up is the most severe; creditors' voluntary liquidation means the directors accepted the company cannot pay its debts; administration means an insolvency practitioner has taken control.
Harmless explanations
- A members' voluntary liquidation is a solvent closure: creditors are paid in full.
- A company that came through administration or a CVA years ago and has filed healthily since is in a different position from one in a process today.
What to do
- Use the process type to decide what to do: claim from the liquidator, talk to the administrator, or simply expect payment in an MVL.
- Check whether the process is still open with the active insolvency test.
Background: What insolvency means for a supplier.
Related tests
- LEG-001Active Insolvency Proceedings
- LEG-020Gazette Notice Existence
- LEG-023Compulsory Winding-Up Order
- LEG-024Administration Appointment
- LEG-025Creditors' Meeting Notice
Part of the test catalogue. Every check Senserity runs, with its severity and the plan it is available on.
Last reviewed .