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How Liquidation Works and how to find dependable company liquidators?

Aug 28, 2019

Umer Idrisi
How Liquidation Works and how to find dependable company liquidators?
Liquidation is a process which for the most part, is appreciated by neither of the parties involved. Keep on reading to get a clear idea of what liquidation is, why it happens, and how you can hire reliable company liquidators to get your money's worth.

Simply put, when a company is sold off to pay the creditors or any other party involved, the sold company is said to be 'liquidated'.

Liquidation primarily occurs in two forms, i.e. voluntary liquidation and compulsory liquidation.

Voluntary liquidation occurs when the company owner or owners/directors make a cohesive decision of selling off the company because more cash is needed to make day to day transactions. This may be done to pay off the creditors.

However, if the company does not have an investor, it is also done if the amount of bills and debt surpasses the actual value or the profit generated by the business. To avoid forceful liquidation, voluntary liquidation is done by most business owners.

This is because it is done to remove any legal pressure and not to just pay off any debtors involved.

Compulsory liquidation happens when a company is obligated by law to sell off its assets to pay back creditors. Compulsory liquidation motions are usually put forward by creditors or shareholders to recover any outstanding payment and debt.

A few of the most common reasons for companies to go through compulsory liquidation are as follows:
  • Taxes are owed.
  • Debts and liabilities surpass the actual value of the company.
  • Incapability to pay outstanding amounts.
When getting your company liquidated, one may think of taking care of the task themselves. While that may save you some funds, it can be a ton of work.

Why not hire professional company liquidators and get the job done to help relieve the stress?

It can happen when one or another in our circle of friends or family has gone through similar experiences, so make sure to take advice from them if you do know anyone.

However, if you still cannot come up with good leads, the web is the next option.

You can use Google or Bing to find the best liquidators in your area and choose the ones that have the highest amount of good reviews. By asking for quotes first, you can move forward if you find anyone suitable and finally plan a meeting.

Only by meeting and discussing your case with someone should you be able to find someone competent and reliable

Feel free to ask the companies for testimonials or their past clients who can verify if they do a good job or not.

In conclusion, if you’re in a situation when you’re planning to liquidate your company, it’s best to seek advice and professional help from liquidators with a good history.

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