EVERYTHING THAT YOU DREAM ABOUT BECOMES A NIGHTMARE
Liquidation process helps to get rid of business debt that occurs due to unforeseen circumstances. This process will let you start over without the fear of creditors or sars that wants to summons you. Liquidation is also suitable for companies that are either no longer in trading or do not have any assets and have a handful of outstanding creditor’s statements.
Liquidation implies that the business is not able to pay its debt and that the business will cease to operate, generally as a result of financial problems.
The liquidation may come about as the result of a legal court process, there are two types of liquidations:
- The owners of the business may choose to voluntarily liquidate
- Through action by the creditors, or
- The court will normally grant a liquidation order if it is proven that the company or close corporation is unable to pay its debts and that it’s fair and equitable that a liquidation order is given.
- Liquidation is a legal process that places the company under the control of a liquidator who must realise the assets and divide them among creditors according to the stipulations in the Companies Act.
- The main aim of liquidation is to divide the yield from the sale of assets amongst creditors fairly and to.
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Directors and members are only liable for debt for which they have signed surety. For instance, If the business has an overdraft, credit cards or a vehicle, the member or director would have to sign surety and you would be liable for it. In most cases is that a sequestration will follow after liquidation.
SARS is a preferential creditor and must be paid after secured creditors and employees who might have claims against your insolvent estate. This means that SARS must be paid before your company’s concurrent creditors (those creditors who do not hold any security).
It is very important to disclose all the company’s assets. If there is an asset to proceed with an income, the curator most likely will allow you to purchase it back.
No business situation is the same, so we rather give you a free quotation.
How to start the process?
- Complete the application form
- Certified copies of the members/directors ID documents
- Closed Corporation or Company documents.
- All outstanding statements of the creditors.
After receiving the above we will give you a free quotation on acceptance upon it. We will draw up all the necessary documentation. We also will immediately send letters to all your creditors notify them that the business is under liquidation. After the liquidation is granted, a curator is appointed. We will then contact you, and proceed in the completion of the liquidation.