Liquidation occurs when a company sells real assets and uses the money to pay creditors or use for personal profit. Liquidation can be accomplished voluntarily or as a result of a declaration of bankruptcy in order to repay debtors. When facing liquidation, many people have unanswered questions and look for answers. Below are just a few of the more commonly asked liquidation questions that have been answered by Experts.
In Chapter 7 liquidation, a court trustee sells assets to pay creditors' claims. The company then ceases operations. Can the entity emerge from Chapter 7 and go back into business? < h2>
If an entity enters chapter 7, there is no way that company can come and start back up. The company will stop all production/operations and close the doors for good. A trustee is then assigned to sell all company assets. The proceeds from the asset sale will be used to pay off any debt. This may include paying investors and creditors.
I would like to liquidate my corporation for the benefit of creditors. How do I begin?
You will first need to list all creditors. Generally, an attorney is used in this process. Once you figure that amount available for distribution, you contact each creditor and offer the percentage that is available. In order for the creditor to receive the percentage, they must also agree not to sue. In the event the creditor declines the offer, explain that you will liquidate the company through Chapter 7 and the result will be less money for their debt.
A photographers which has gone into liquidation has £265 of photos which are fully paid for and are in the studio ready for collection, are we able to get them back?
It is possible that bankruptcy laws in England/UK are the same as the bankruptcy laws in the US. If you have paid for the photos, you should be entitled to them. The first step is to contact the Official Receiver overseeing the liquidation and let them know that you had paid for the photos before the bankruptcy. The official Receiver will discuss with you on how to obtain the photos. Likely, you will have to be listed as a creditor until you receive the photos.
Can a spouse force the liquidation of a company if it is the sole source of income for the other in the state of Arizona?
Generally, a judge will estimate the value of the business and either order to have the business sold and split the money, or allow for one spouse to buy the business from the other. If the business is based off of the knowledge of one of the spouses (dental, medical, or other specialized skill) the business usually isn't sold. Usually, in a case such as this, the court will ask one spouse to buy the other spouses share of the business.
Many questions arise when a company is facing liquidation. Many people are unsure of what to do and need assistance. If you have issues or questions regarding liquidation, you should ask an Expert for specialized assistance.