Eliminate your business debt quickly and effectively.
When businesses face financial strain, the topic of company liquidation in South Africa becomes a subject of widespread discussion. Liquidation offers a swift and effective resolution for eliminating business debts.
Nevertheless, there are situations where directors may still bear responsibility for business debt. Discover more about the process, its intricacies, and the advantages it offers.
When should liquidation be considered as a debt relief solution?
Businesses that have more liabilities than assets are eligible for business liquidation. The Insolvency Act regulates business liquidation in conjunction with the Companies Act.
Where does the liquidation process take place?
There are two options available for liquidating a business. One can bring a liquidation application by way of a high court application. However, this kind of liquidation application is very costly. Another option is via the CIPC platform, which is much more cost-effective.
Appointing a liquidator to deal with the company’s assets and liabilities? Once the company has been liquidated, the Master of the High Court will appoint a liquidator. The liquidator will handle the winding up of the business. They will communicate with creditors, oversee asset sales, and keep the Master of the High Court, informed about the progress of winding up the bankrupt business.
No Assets - No problem
As opposed to a personal sequestration application, liquidating a business don't require the existence of any assets.
The liquidation application has been approved. What should I expect? Creditors with valid claims against the Liquidated Company must submit their claims to the Liquidator. If there’s assets in the Liquidated Company these assets will be sold and the proceeds will be utilised to pay service providers and creditors in terms of their claims, proved against the company.
What happens if there’s a deficit? If there is a deficiency, it will be written off, and the creditor cannot pursue the business for payment.
If you're interested in company liquidation, feel free to reach out to our office. Our team of Professional Debt consultants is ready to provide you with all the information you need about Liquidation, including its advantages and disadvantages, and how it can be beneficial for you.
CureDebt, a trusted Business Debt Relief Expert with NCR accreditation who can assist you in finding the ideal solution tailored to the particular needs of your company.
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WHAT CURE DEBT OFFER?
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Disclaimer:This article is for informational purposes only and does not constitute legal advice. Call on Cure Debt rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing.
