Edge of Bankruptcy

Submit Enquiry

Name

Email

Phone:

Enquiry Type

Comments

Enter Code:
Captcha

Insolvency And Liquidation Information

Today there are many people dealing with financial struggles. For this reason there are many options that are available to you that can help you deal with these stressful issues. Liquidation is one such option that is the process of turning a company’s hard assets including buildings, furniture, patents, and copyrights into cash.

The cash that is accumulated from liquidation is used to pay off existing debt or to reap personal benefit. There are three main types of liquidation including members’ voluntary creditors’ voluntary, and compulsory liquidation. Members’ voluntary liquidation is when the shareholders of a company decided to put it into liquidation and the assets positively outweigh the debts, meaning the company is solvent.

Creditors’ voluntary liquidation is when the shareholders of the company decided to put it into liquidation and the debts of the company outweigh the assets, meaning the company is insolvent. This is the most common type of liquidation.

The last type of liquidation is known as compulsory liquidation which is when a court orders a receiver or liquidator to analyze a company’s assets and decide what is the best order to pay off debts. When a company is going in to liquidation it is important that the director insures that all trading has ceased so that the company doesn’t get into further credit problems.

It is required that directors hand over their control to official receivers (ORs) or liquidators who are able to tell a company’s creditors and contributors (such as shareholders) that the company is being liquidated. Liquidation does not mean the end is near for a company. There are also some possible alternatives to liquation that may be helpful for your company’s current financial situation.

Some may still be confused about what the differences are between bankruptcy and insolvency. Bankruptcy is more commonly used for individuals while insolvency is more commonly used when regarding a business.

Written by Carly Sternson. Find the latest Insolvency or find out more information on Liquidation.

This article is free for republishing
Source: http://www.financealley.com/article_209283_76.html


Don't Miss...
  1. Understanding Insolvency and Liquidation
  2. Potential Implications of Insolvency for Directors
  3. Smart Tips on Liquidation and Insolvency
  4. Some Great Facts on Insolvency
  5. Bankruptcy Advice: How to Resolve Insolvency
  6. Using a Consolidation Loan to Improve Credit Scores and Eliminate Debt
  7. Insolvency Practitioners in the UK: How to Not Get to Know Them
  8. Are Unsecured Loans Really Better?
  9. Sometimes The Only Option You Have Open To You Is To Consolidate Debts And Loans
  10. Bad Debts Personal Loans To Help You Achieve Your Goals
  11. Are Your Debts Out Of Control? You May Need A Debt Reduction Service.
  12. Debt Consolidation Loans – Pay Off Old Debts Without Hassles
  13. Unsecured Personal Loans: No Assets Required To Get Support Now
  14. Make An Escape From Debts Through Unsecured Consolidation Loans
  15. Renovate Your Homes With Secured Home Improvement Loans
  16. Secured Loans: For all the hard times
  17. Unsecured Debt Consolidation Loans Get rid of your debt nightmares
  18. Homeowners With An FHA Mortgage: Streamline It -Save Money
  19. California Bankruptcy - Credit Score at Stake
  20. Dare To Achieve Your Goal with Student Debt Consolidation Loans
  21. Poor Credit History Loans: Your Way Out of Mess
  22. Have a Debt Free Life: Secured Personal Debt Consolidation Loans
  23. Unsecured Bad Credit Personal Loans: Give Desires The Cash
  24. Mortgage insurance - protecting your assets
  25. One Cure For Your Problems - Debt Consolidation Loans
  26. Unsecured Loans Online: A Loan to Crack the Money Problem
  27. Online Instant Auto Loans Are Available At Cheap Rate
  28. Bad Credit Loans – find hurdle free finance for your needs
  29. Consolidation Loans: Consolidate all debts into one
  30. Debt Consolidation Loans – Come Out Of Debts
Latest...
  1. Survive After Bankruptcy Using Wilderness Survival Skills
  2. Till Death or Bankruptcy Do Us Part
  3. First Steps to Take After You've Filed Bankruptcy
  4. Is Bankruptcy a Better Solution to Become Debt Free?
  5. Life After Bankruptcy - If You Don't Fix Your Credit Now, You'll Hate Yourself Later
  6. Bankruptcy Home Equity Loan Choices
  7. Home Loan after Bankruptcy – Is it Possible?
  8. Correcting The Common Misconceptions About Filing Bankruptcy
  9. Get Simple & Easy Debt Help with Clear Start
  10. Debt Advice & Consolidation - The Importance of Regulation in the Industry

© Edge of Bankruptcy 2008. All Rights Reserved