Liquidation is the process of winding up a company that has been trading insolvent. Insolvent trading means a company is unable to meet its financial commitments or pay its debts. A company’s assets are subsequently liquidated (or sold) to pay debts, and the company is deregistered (or closed).
It may come as a surprise, but many directors are unaware that it is against the law to knowingly trade an entity when it is insolvent. Continuing along that path can be dangerous with directors potentially at risk of personal liability.
At Australian Debt Solvers, our aim is to take the pain out of business liquidation and minimise the stress it may cause.
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