Bankruptcy bankruptcy law liquidate liquidating liquidation
Are creditors threatening to put you out of business and force your company into compulsory liquidation?
Are you wanting to stop this from happening, or are you considering the possibility of winding up voluntarily?
A secured debt is a debt secured by collateral, or an asset, such as a mortgage secured by a home.
If you default on the debt, your creditors can seize the asset.
A liquidator is appointed when a company is placed into liquidation.
The liquidator takes control of all the company’s unsecured assets, which are sold to repay the creditors.
It is adopted where the company is able to pay its debts in full within 12 months after the commencement of winding up.
The directors of the Company are required to file a declaration of solvency.
In a Chapter 13 bankruptcy, you pay all or a portion of your debts over time, following an approved payment plan.Directors are also required to help the liquidator locate the business records and assets, and to answer any questions about the company and its business.It is an offence for a director to destroy, hide or remove property, records or other documents. The liquidator will also check whether the directors or shareholders owe any money to the company, and whether any offences have been committed.Overview Liquidation is a process where the company’s assets are seized and realised, with the resulting proceeds used to pay off its debts and liabilities.
Any surplus is then distributed among the contributories of the company according to their rights and interests, or otherwise dealt with as the constitution of the company directs.
Chapter 7 bankruptcy, by contrast, is the liquidation of your nonexempt assets -- if you have any -- to pay creditors.