Voluntary liquidation
Have you made the decision to close your business? You can trust us to take care of everything and ensure a legally compliant process!
You should bear in mind that voluntary liquidation can be risky if you’re a shareholder. In certain cases, creditors may sue you personally for the debts the company owes them. This is why you should call on trusted professionals. We can help you avoid this scenario.
When should you consider a voluntary liquidation?
Please bear in mind that a voluntary liquidation is not the same as commercial bankruptcy. The first involves the voluntary closure of a company while the second is a required outcome where a business is insolvent.
Therefore, voluntary liquidation may be considered where a company is solvent (i.e., it has sufficient assets to repay all its debts), but the owner wishes to cease its operations.
What is the process for a voluntary liquidation?
There are five primary stages in a voluntary liquidation:
- Decision-making : Shareholders vote to close the business.
- Appointing a trustee : A Licensed Insolvency Trustee is appointed to manage the liquidation.
- Inventory and realization of assets : The trustee sells the company’s assets to pay off its debts.
- Paying creditors : The trustee then distributes the funds collected on a priority basis.
- Legal dissolution : The company is officially dissolved and removed from business registries.
What are the advantages of a voluntary liquidation?
Voluntary liquidation has the following advantages:
- You decide when and how to close your business.
- You benefit from legal protection and guidance to minimize personal liability risks.
- You maximize the realization of the company’s assets.
Filing a declaration of dissolution is not an easy step, but it allows you to reimburse your creditors, wind down the company’s operations and enjoy a worry-free life once more.
How can a Licensed Insolvency Trustee help you with a voluntary liquidation?
Closing a business is a complex process that involves complying with several formalities. A Licensed Insolvency Trustee will support you throughout the process and ensure that everything runs smoothly. They’ll measure the assets, organize their sale and manage communication with the creditors. In short, their expertise allows you navigate the entire process with peace of mind while respecting your legal obligations.
Other solutions that can help
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Recovery plan
There are many reasons behind financial difficulties. Together, we’ll analyze the situation and identify your company’s strengths and weaknesses before proposing recovery measures to get it back on track.
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Proposal to creditors
Our experts negotiate an agreement with your creditors on your behalf. As a result, your payments will be reduced and your debts spread out over a longer period. The objective is to give your business a second chance!
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Commercial bankruptcy
When no other solution is possible, commercial bankruptcy can release you from your obligations towards your company. We work together to analyze how bankruptcy could impact your personal finances. We also come up with solutions to protect you from your creditors. We take care of everything so you can regain peace of mind.