In the UK there are 3 types of liquidation;
1. Compulsory liquidation where the company is wound up by the
court, usually at the instigation of a creditor.
2. Creditors voluntary liquidation (CVL) when a company is
insolvent, this process is instigated by the directors of the
company.
3. Members voluntary liquidation (MVL) is a solvent liquidation,
basically all creditors are paid in full and there is a return to
shareholders.