When a company finds itself in financial trouble it can’t resolve, liquidation is often the best way forward. In basic terms, liquidation is a formal process that involves closing down the business and selling off its assets to pay as much of its debts as possible. Though it’s a tough decision, liquidation provides a clear and legal way for directors to manage unresolved financial issues and allow all parties to move on.

Liquidation involves many steps, including asset sales and paying creditors, which may leave those involved wondering what happens next. Here’s a breakdown of what to expect after liquidation for directors, employees, creditors, and future business ventures.

Once liquidation begins, the company stops all trading activities. A licensed insolvency practitioner is appointed as the Liquidator and assumes responsibility for managing the company’s remaining affairs. Their role involves gathering and selling assets, paying off creditors in an organised manner, and eventually dissolving the company. This process can vary based on the type of liquidation, whether it’s a Creditors’ Voluntary Liquidation, a Compulsory Liquidation, or a Members’ Voluntary Liquidation for solvent companies.


Learn More - https://www.leading.uk.com/what-happens-after-liquidation/