Liquidation – The different processes

Liquidation can refer to several different processes. Company Liquidation can refer to both insolvent liquidation and solvent liquidation. Liquidation can also refer to the sale of unwanted or surplus stock or assets.

The use of Liquidation in the context of company closure is the technical use of the term Liquidation as laid out in the Insolvency Act.

Company Liquidation

The liquidation of a company is the more formal use of the word.

Company Liquidation can refer to both an insolvent liquidation and a solvent liquidation.

Insolvent Liquidation refers to a process where company liquidation takes place to close down the company where it doesn’t pay its creditors (those who it owes money to) in full.

Solvent Liquidation refers to a process of company liquidation where the company assets are distributed to the shareholders of the company in a tax efficient manner.

To learn about the types of company liquidation please follow the link.

Asset Liquidation

Liquidation can refer to the liquidation of assets into cash. This could be the liquidation of excess stock or company assets that are no longer required. More often than not excess stock is liquidated through internet auction sites.

Asset liquidation takes place as part of a company liquidation but asset liquidation can also take place outside of company liquidation.

Liquidation Help

At Liquidation.co.uk we specialise in company liquidation and can provide liquidation help to provide answers and solutions to company questions.

Liquidation help is crucial in understanding the best process to use for your situation.

Liquidation.co.uk see the importance of giving clear explanations of the various insolvency and rescue processes available. As Licensed Insolvency Practitioners we are able to advise on and transact all aspects of personal and business insolvency matters.

Please call us for any advice Contact Us