There are 2 kinds of liquidation (this is where a company can’t honour all of its debts anymore and has to sell its assets to meet commitments) and sequestrations (this is where a person can’t honour all of its debts anymore and has to sell his /her assets to meet commitments)
- creditors’ liquidation – a creditor of you choose to start the liquidation / sequestration process on behalf of the company because it can’t pay your debts;
- members’ liquidation – you / your company can’t pay your / its debts and you choose to start the liquidation / sequestration process;
Firstly, it must be understood that a liquidation / sequestration is not an embarrassment to you or anybody. It is a simple business decision or process. Liquidation / sequestration is a debt solution and altough it has serious implications (towards you and your creditors), it only remains a business desition. The liquidation / sequestration process require a liquidator / trustee removing your / the company’s assets and selling it to the highest bidder on an auction. ,
How to apply for liquidation / sequestration:
Contact our office for a free consultation regarding the process to be taken as well as alternatives (like Business Rescue in the case of companies or Debt Review in the case of persons).