Liquidation Articles  #creditors

Company liquidation is a legal process that involves the appointment of a liquidator to bring an end to the affairs of a limited company. Upon completion of the process, the company ceases to exist. It's important to note that liquidation doesn't guarantee payment to creditors of the company. The primary aim of liquidation is to ensure that all the company's affairs are properly dealt with.

Signs that may indicate your company is in financial difficulty: On-going losses Poor cash flow Absence of a business plan Incomplete financial records or disorganised internal accounting procedures Lack of cash-flow forecasts and other budgets Increasing debt (liabilities greater than assets) Problems selling stock or collecting debts Unrecoverable loans to associated parties Creditors unpaid outside usual terms Solicitors’ letters, demands, summonses, judgements or warrants issued against your company