If your company is not doing very well, and you realize that it is near the end, you may have to begin liquidating everything that you own. In standard terminology, a liquidation is where you are selling everything that you own, usually at substantially discounted prices, just to get as much money as you can. From a business perspective, when looking at this through the eyes of finance, it is something that occurs in a company that has become insolvent. This only means they are not able to pay their bills anymore, which means some assets that they have must be divided up, sold off to pay shareholders and creditors. Here are the options that you have available to you if you are going to go through a liquidation shortly.
The first option that you have is filing what is called Chapter 7 bankruptcy, part of the US bankruptcy code. The second option that you have is Chapter 11, which is where you are trying to rehabilitate your business and restructure all of your debts. Financially speaking a liquidation is simply getting your business to the very end which means distributing and selling all of your assets so that the claimants can be paid. After this happens, the companies been dissolved, and this is what happens if you file chapter 7. Additionally, the debts do still exist, however after what is called the statute of limitations has expired, they no longer well. At this point, the only thing that the people that you owe can do is simply write off the debt, and then everything will be finalized.
Finding A Liquidation Attorney
There is far too much paperwork to do if you have never done this before, and especially if you have no legal experience. It is always recommended that you contact a professional liquidator, a lawyer that specializes in the many different types of bankruptcy that are out there, helping you to either restructure your company or bring it to its end. Either one of these options will work, and they cost about the same, depending upon what law firm you choose to work with. Some of them are much more expedient than others, and also come with high recommendations, but you will also pay for their ability to take care of this as soon as possible. They can be found very easily by searching on the web for liquidation attorneys that will more than happily represent you in a court of law. They will set up all of the court dates, file the paperwork that is necessary for the accuracy to proceed, and make sure that all people involved are taken care of in a legal manner.
After this process is over, you can then begin to rebuild. The only problem is that it will be difficult to get any financing for the next several years. For example, if a person files bankruptcy, this could be on their credit rating for five years or more, making it tough to get even a credit card. The same goes for companies, even if they are incorporated, as they may have to go to a completely different bank to get proper funding. Your attorney will be able to tell you how long this situation will last, and perhaps provide you with a little bit of information about what to do after a company liquidation has occurred.