Bankruptcy Advice Centre

LIQUIDATION

If the directors do not have the funds or desire to continue trading, they can elect to place the company into liquidation. A liquidator is appointed whose role is to review the affairs of the company, realise assets (including recovering any preferential payments or insolvent trading claims) for the benefit of creditors.

The longer directors procrastinate over or delay the company going into liquidation, generally the lower the level of rerun to creditors, but also the higher the probability of insolvent trading. Therefore it is to everyone’s advantage that decisions be considered seriously, but quickly and consult with an insolvency practitioner at the earliest opportunity. Early contact may even avoid the need the liquidation.

Various types of liquidations exist, depending on the particular nature of the company and its asset/liability position. Even a company with assets and no liabilities, may require to be liquidated if the company structure is no longer required by the directors.

If you would like to talk to someone about Voluntary Administration, Company Liquidation or Informal Arrangement, please phone Ross Thomson on (08) 9227 8353 or 1800 738 353.
Email mail@bankruptcyadvice.com.au

Due to the complexities in administering Corporate Insolvency matters, we may not be able to deal with matters outside of Western Australia. However please phone to discuss this first.


	LIQUIDATION If the directors do not have the funds or desire to continue trading, they can elect to place the company into liquidation. A liquidator is appointed whose role is to review the affairs of the company, realise assets (including recovering any preferential payments or insolvent trading claims) for the benefit of creditors. The longer directors procrastinate over or delay the company going into liquidation, generally the lower the level of rerun to creditors, but also the higher the probability of insolvent trading. Therefore it is to everyone’s advantage that decisions be considered seriously, but quickly and consult with an insolvency practitioner at the earliest opportunity. Early contact may even avoid the need the liquidation. Various types of liquidations exist, depending on the particular nature of the company and its asset/liability position. Even a company with assets and no liabilities, may require to be liquidated if the company structure is no longer required by the directors. If you would like to talk to someone about Voluntary Administration, Company Liquidation or Informal Arrangement, please phone Ross Thomson on (08) 9227 8353 or 1800 738 353. Email mail@bankruptcyadvice.com.au Due to the complexities in administering Corporate Insolvency matters, we may not be able to deal with matters outside of Western Australia. However please phone to discuss this first.