Liquidation processes

Liquidation is the process of closing a business by selling its assets to pay off debts. When a company can’t meet its financial obligations, it may undergo liquidation to distribute remaining assets fairly among creditors and shareholders. The process involves valuing assets, selling them, and using the proceeds to settle outstanding debts. Once completed, the business ceases to operate. Liquidation can be voluntary (led by the owners) or involuntary (forced by creditors or courts). It ensures an organized resolution of a company's financial obligations, often resulting in the company's dissolution.