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What Happens When a Company Applies for Liquidation?


The liquidation of a company can take months or years to complete the process. The bigger the company's size, the more time it will take to liquidate. If you're planning to liquidate a business soon, here are the basic steps you'll take to liquidate it successfully.

  1. The company sends its application for liquidation to the court. The court will issue a public announcement of the liquidation 14 days before the hearing or execution of the process.

  2. The company will appoint a liquidator within two months of the liquidation period's date. An inability to submit their appointed director will force the court to appoint its own.

  3. Your business will complete and note all its liabilities and assets to the liquidator, especially when the company is nearing bankruptcy or has already become bankrupt. The liquidators will sell off all available assets and convert all liabilities into assets as much as they can.

  4. It is the liquidator's responsibility to find buyers and use auctioning companies available in the area to meet the timeline of the company liquidation. They would raise money by selling assets and turning liabilities into assets to pay back creditors. Auctioning companies are invaluable at this point because they help speed up the liquidation of usable and serviceable machines.

  5. Once the liquidation reaches the final stages, the liquidator will update all creditors and benefactors about the entire case's remaining responsibilities to them, if any. They will issue updates to unsecured creditors first, then company employees if there is an excess during the sale.

You can always count on Infinity Asset Solutions to provide top-notch asset liquidation of a company through effective, extensive auctioning of usable equipment, machines, vehicles, properties, and beyond. With over 100 years of collective experience, we're sure we can speed up your liquidation process. Let us assist you through your business' liquidation process by contacting us.


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