Liquidation Process
The liquidation process is the formal procedure of closing a business and selling its assets to pay off debts. When a company can no longer meet its financial obligations, it may enter liquidation voluntarily or be forced by creditors. An appointed liquidator evaluates the assets, sells them (like inventory or property), and uses the proceeds to pay off creditors in a specific order. Once all assets are sold and debts settled, the business is officially dissolved. Liquidation can help free individuals from overwhelming debt and is often seen as a last resort for struggling businesses.
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The liquidation process refers to the procedure of closing a business, where its assets are sold off to pay creditors. When a company is unable to pay its debts, it may enter liquidation, either voluntarily or through a court order. During this process, a liquidator is appointed to take control, sell the company’s assets, settle debts, and distribute any remaining funds to shareholders. The goal is to clear financial obligations and conclude the company’s operations legally, allowing it to cease existence in an orderly manner.