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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.

Part of the test catalogue. Every check Senserity runs, with its severity and the plan it is available on.

Last reviewed .

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