You can get out of debt legally. Let Liquidation rescue you. All too often, business owners fear liquidation. They try everything else to save the business but liquidation, when liquidation should be the first option.
Any business owner who owns a business that is suffering financially and cannot pay its debt, should use liquidation as soon as the problems appear on the horizon. Liquidation can come to the rescue of a company that cannot get out of debt.
If you fear Liquidation and you feel like you would like someone to talk to to learn more, reach out to me right now. Use the opportunity for a free call with a Liquidation Attorney by clicking on the button below as soon as possible.
How can Liquidation help you get rid of debt and continue to trade?
Liquidation was designed to get companies out of debt so that they can continue to trade. If business owners were not assiste to get rid of debt, the economy could come to a stand-still as too many businesses (especially nowadays) fail. The intention of the Companies Act is also to limit the damages that creditors and employees of a company can suffer and therefore places a duty on a director to Liquidate a company as soon as it cannot pay its debt.
As we live in a free economy, it means that any person can own as many businesses as he/she likes. Some can be Liquidated and some can be successful. No penalty exists in our law that prohibits any person to own a company after Liquidation.
It is the company that is Liquidated and not the individual. The only way a director is affected by a Liquidation is if the director signed personal surety for the debt of the company.
Liquidation will rescue the business
Liquidation will get the company out of debt without the owner having to put in any extra money. Liquidation will write off the debt. If the debt is written off, having no debt will rescue the business because it can continue to trade. To be able to trade and keep control of the cashflow without having to give it to creditors, gives the business a fighting chance. Also, the focus of the business owner will be in the right place namely growing the business, instead of investing time and energy into nursing a crippled horse to life.
Once Liquidation has come to the rescue and moved the debt out of the way, the company can heal itself. If the business continues for too long when it should Liquidate instead, the company will be weakened or damaged and it can grind to a halt with no solution in sight.