Long Business Description:
We have over a decade’s worth of experience in dealing with Liquidation and related matters. We use our extensive knowledge to evaluate your unique situation and offer you the best solutions.
What is Liquidation?
When a business is unable to pay it’s debts, the owner of the company can apply to liquidate the business. Liquidation encompasses the process of a Liquidator taking charge of the estate and selling the assets by way of public auction.
If auctioning off the client’s assets does not generate enough revenue to pay off debt, Credit Providers will turn to personal sureties to pay the difference. If the directors or members cannot settle the outstanding debts, then they have the option to include these debts under debt review, or apply for Sequestration in their personal capacity.
Benefits of Liquidation:
Relatively low costs involved
The legal costs involved in liquidating a Company are significantly lower than the outstanding debt owed to the Credit Providers.
Leases can be cancelled
Terms on lease and hire purchase agreements are generally terminated at the date of Liquidation, meaning that no further payments need to be made. If any arrears exist the leasing agency can put in a claim along with the other credit providers.
Legal action is halted
Any legal action against the Company is stopped on Liquidation. As long as you have not signed personal surety for a company debt, creditors will be unable to take action against you
Outstanding debts are written off
As a director you have no legal liability to repay monies owed by the business, unless personal surety was given for company debts. This opportunity exists to avoid any investments from being swallowed up by existing debts.
Avoid court processes
By voluntarily choosing to Liquidate the Company you demonstrate to the public that Liquidation was a company choice rather than a Credit Provider forcing legal action against you