The Benefits of Liquidation in South Africa

The shortest route to the fastest solution for a company that has debt it cannot pay, (SARS included) is Liquidation.

Liquidation ends the company that cannot pay its debt. After Liquidation the affairs of the company is wound up. Creditors are under control, the liquidator deals with them so that you do not have to. 

Liquidation is an incredible relief to business owners as it enables them to continue to trade but be rid of the debt. 

Let us liquidate your business in 5 days so that you can start over.

Liquidation gives relief from debt, protect your assets, and give you a fresh start.

  1. Liquidation can provide relief from debt for both the company and its directors.
  2. Liquidation writes off the company’s debts.
  3. Liquidation can protect the assets of the company from being seized by creditors. The liquidator takes control of the assets. These assets are either sold or the directors can buy them back.
  4. Creditors must deal with the liquidator and not the directors, so the harrassment stops.
  5. The reputation of the company can be protected. If the company trades while it owes creditors, it can tarnish the good name of the business. It will make it difficult for the company to continue to trade if the creditors are fed-up with it. It is better to restructure soon and keep good relationships with creditors if you need them for your new company.
  6. Liquidation can provide a fresh start for the company. The company can continue to trade if it wants to. Talk to us about how to Restructure your company (of which Liquidation is one of the legs). We will advise you on how to get rid of the debt (SARS too) and continue to trade.
  7. After liquidation a liquidator is appointed to wind up the Insolvent Estate of the company.The Liquidator must deal with creditors so that the directors do not have to. Creditors must stop all legal action and must take part in the insolvency process. That which a creditor does not get must be written off.
  8. The directors can keep the staff if they want to. It is possible also keep fully paid assets if they prefer. (The assets can be purchased back from the liquidator).

The one thing all of our clients that we have helped over the last 17 years say is:  “I am so sorry that I did not do it sooner”!

Indeed, Liquidation can help solve financial problems. Insolvency is a solution for both individuals and companies to deal with debt if the debt cannot be paid.