The Best Liquidation Advice

By: clarkamerson

There are many different ways in which liquidation advice can be given, but there are only three different types of liquidation, members' voluntary liquidation, creditors' voluntary liquidation and compulsory liquidation. It is very important to remember that no company should go through liquidation without the help of a financial advisor, or the help of another legal advisor. If your company has not got enough assets to pay off debt, and becomes insolvent, speak to the financial advisor about providing you with insolvency advice.

There are three other options if you are in the liquidation situation;

Informal Agreement
The accused company can make payment plans in writing to the creditors and try to negotiate the situation before it goes as far as the courts. This is often the solution to liquidation but not all creditors will do it. But it's worth a try.

Company Voluntary Arrangement
This is very similar to the informal agreement, the only difference is that this option is formal and it includes the directors relating to the courts and involving an authorized insolvency practitioner.

Administration
In this case, the court will grant admission orders, this is to help the company a little and relieve them from the creditors. This helps a lot as at this time the shareholders of the company are pressured and it might lead to them making the wrong decisions. This will just give the accused company some space where they can make their decision without the interference of the creditors.

It is very important that the company gets some form of liquidation advice before going through with anything. It is common for the company to just do as the creditors say in order to prevent them from taking the matter to the courts, but they should instead speak to an advisor before making any decisions.

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