Prinsloo and Associate Attorneys

The Solution You Need To Get Your Business Debt Free

We are Liquidation Attorneys that work nationally that can help you get rid of SARS and other debt.

Are you swimming in debt that your business cannot pay but unsure how to deal with it? It is possible to stop living in survival mode and get rid of SARS and other debt.
Where does one go for guidance, understanding and support?

What does the Liquidation of a company mean

Liquidation is the process of bringing a company to an end.

Creditors are no longer able to take legal action against the company, and any legal action that was already underway is suspended. Only the Liquidator can deal with creditors.
In a Liquidation, all creditors must “come together” and share in what is available from the company. Assets and cash are distributed among creditors according to a pre-determined order of preference. Any debt that remains after assets and cash have been distributed is written off.

It is not a necessary for a company to own assets to be able to Liquidate.  The company MUST liquidate as soon as the liabilities exceed the debt or the company cannot pay its debt.

How do you Liquidate a company

There are two ways to Liquidate a company or close corporation…


A company can be Voluntarily liquidated at the Companies Offices.
Liquidation at the Companies Offices takes about one week. The cost is much lower than a court application.
We will draft documentation that the director will sign, return it to us, we lodge it and within 3 – 5 days the company is Liquidated.


A company can also be Liquidated by means of a High Court application.

High Court Liquidation applications are expensive and takes about 2 months plus. If the company is voluntarily liquidated, it is better not to bring an application in the High Court from a cost and time perspective.

Liquidation is a Two-Legged Process


The first leg of a Liquidation is to get the company Liquidated. That is what we do best.

We will help you Restructure your business if you want to continue to trade,

We will draft all documentation, arrange signature with you and lodge them to effect the Liquidation.


The second leg of a Liquidation is to wind-up the insolvent estate. A Liquidator is appointed by the Master of the High Court.

The Liquidator deals with creditors – you do not have to.

Any assets that the company may own will be sold by the Liquidator (the director can buy it back). If any proceeds, creditors will be paid and that which they do not receive will be written off.

If there are no assets, the creditors will get nothing and they must write all balances off.


Liquidation writes off SARS debt (except taxes owing in terms of the Customs and Excise Act).


Staff can claim UIF for salaries. Staff can claim unpaid retrenchment/ salaries from the Liquidator after Liquidation. If the business owner continues with business, staff can be taken into the new company.


Any debt that a director signed personal surety for will not be written off after Liquidation. If affordable, one can enter into a payment plan. If not, one can consider personal sequestration to get rid of the debt.

Benefits of Voluntary Liquidation


It is possible to continue with the business after Liquidation.

We do it through a Restructuring process that we will discuss with you before you Liquidate. 


The directors are not liable for the debt of company unless they signed personal surety. Liquidation only affects the company.

Directors are not blacklisted if a company is liquidated.

You are obliged to Liquidate a company that cannot pay its debt

The Companies Act states that as soon as a company cannot pay its debt, or where liabilities exceed assets, there is a duty on directors to Liquidate the company, otherwise the director can be held personally liable. It is therefore best to Liquidate sooner rather than later.