Compare procedures

Choose up to three procedures and compare their purpose, control, stages and possible outcomes. Follow each guide for the detail, exceptions and sources.

Showing England & Wales. Compare explanations, rather than treating this as an eligibility assessment. Procedures can have different geographical scope and legal purposes.

Insolvency procedure comparison for England & Wales
At a glanceAdministrationCompany voluntary arrangementCreditors’ voluntary liquidation
PurposeRescue the company, obtain a better overall creditor result, or realise specified assets under the statutory hierarchy.Compromise or reschedule qualifying company debts through an approved arrangement.Wind up an insolvent company and distribute available assets under the legal priorities.
Who starts it?Company, directors, a qualifying floating-charge holder or an eligible court applicant; route restrictions apply.Usually directors with a nominee; an administrator or liquidator can also propose it.Members pass a winding-up resolution, usually following directors’ proposals; creditors have appointment rights.
Who is in control?The administrator controls the company, business and property.Directors usually run the company; an insolvency practitioner supervises the arrangement.A licensed insolvency practitioner acts as liquidator.
Timing & stagesInitial statutory duration normally one year; earlier exit and extensions are possible.The proposal sets the term. Approval and challenge processes have statutory rules.No fixed completion period; the work and any disputes determine duration.
Possible outcomesCompany rescue, business or asset sale, CVA, liquidation or dissolution.Completion of the agreed compromise, variation, or failure that may lead to another procedure.Asset realisations, possible creditor dividends, investigations and normally dissolution.
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