No business owner wants to think about the possibility of liquidating their business, but if it becomes necessary, there are steps you can take to minimize the impact on your business and personal finances.
There are things that you can do to stay on your feet and not have a big impact on your business if you need to Liquidate your company. Talk to us in a Free 15-minute call learn how powerful these five steps are.
The First Step
Seek professional advice. You are already busy doing it by reading this article. You are now in the safe hands attorneys who have helped countless businesses to successfully get rid of debt while they continued to trade. We will guide you through the Liquidation process and ensure that you comply with all legal requirements. The better you understand the process, the better informed decisions you can make.
The Second Step
Get everything in order so that you can continue the business (if you want to continue with the business).
If you want to work with us to help you liquidate your firm, we will also help you restructure it.
This will enable you to continue with the business. We can get all this in place before you proceed with the actual liquidation.
The Third Step
Protect your personal assets.
You may have signed personal surety for some of or all of the debt of the company. Sureties are not cancelled by liquidation. This means that after liquidation the creditors that you signed personal surety for will call up the sureties. If you are not going to personally sequestrate (which will write off the sureties), you need to protect your personal assets. If your personal assets are protected, creditors cannot attach them for the sureties. We will also advise you of these steps when we assist you.
The fourth step:
Determine the position with your landlord, if there is a landlord. Arrear rent puts you at risk that your landlord can get a court order to lock the doors if you do not pay them. If you are locked out you cannot trade any further and that can grind you to a halt. You either need to negotiate with your landlord so that the landlord does not get a court order until liquidation, or you need to move out of the premises timeously. We will give you advice on this problem during the restructuring process when we help you with your liquidation.
The Fifth Step
Choose a date on which you will stop trading with the company that will be liquidated. This will give you a target date to aim toward. It will give meaning to everything that we must get in order as part of the restructuring process. It will also assist you to sort out issues so that you can make a fresh start. You will be able to rest easy knowing that there will the change will be peaceful. We do not want you to liquidate before you are ready to continue with business as it would stop you from trading.