There are two kinds of liquidations, such as voluntary liquidation and involuntary liquidation. In both cases, you need to hire professional Liquidators. They can close your company by paying your debts to the creditors and stakeholders. The aim of these liquidation processes is the same, and liquidators can close your company by selling the company assets to pay off the debts.
It is a huge responsibility, and you will get hold of that company for a limited time. At the end of the liquidation, you can remove the company name from the company registration. Make sure it is not a job for saving a company, and you do not need to save the company from its bankruptcy. You need to sell the company and its assets to clear their debts.
Here, you can find such liquidation processes:
Compulsory liquidation:
In compulsory liquidation, you need to lodge a liquidation request in the court and liquidators will be appointed by the court only. Normally, such petitions are filed by the creditors. Still, any stakeholder or state authority can also file a petition for the liquidation of a company. If the liquidation petition is filed by the company directors, then it will be treated as voluntary liquidation. As a director of a company, you can hire liquidators for various reasons. For example, if you cannot run your company financially and you have debts that exceed the total value of your business assets, you can hire such liquidators to sell your business and its assets.
If you cannot be able to pay your creditors, then you have to sell your business assets. In this case, you can face some lawsuits lodged by your creditors, and deal with such a legal issue. Apart from that, you cannot run a bankrupt business for long and you can hire liquidators to close your business. Once the liquidation process is started, no one can lodge any complaint in court against your company, and your liquidators will fight such lawsuits on your behalf. You do not need to face such legal harassment. Your liquidators will solve or close the cases by paying off the creditors.
Voluntary liquidation:
Like the above, when you go for the liquidation process as a company director, it will be treated as voluntary liquidation. In this case, you need to take the required permission from all the directors of your company. If your business is bankrupted, then you do not have any option apart from hiring such liquidators. Otherwise, creditors will start knocking on your doors and file some lawsuits against your company.
To save your business and avoid such legal hassles, you can simply hire a liquidator to take charge of your company. He will start the liquidation process and sell your company assets to pay the creditors. Apart from that, he will negotiate with your creditors to settle your cases, if required. So you can reduce your stress by the sell of your bankrupted company through a liquidator.
Final Words
Liquidation is not an easy process, and you need to check the experiences of a liquidator before you hire. Make sure you must check their license and previous track records before you hire. In this case, you can search for such liquidators online and choose the best one for your company. It is better to choose a liquidator who has similar experiences.
For example, a liquidator settled a company similar to your entity can easily close your case and complete the liquidation process faster.
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