When you have an organization, you need to know who is a liquidator. First, you need to know what liquidation is. The situation of hiring a liquidator may arise especially if you think that your business is going insolvent.
What is liquidation?
If you cannot able to clear your debts and want to close your business then you have to hire a liquidator to close your company in a proper way. It is the process of bringing an organization to a proper end. In the liquidation process, the assets and everything needs to be distributed among the claimants. In this case, liquidators can sell your assets and clear your debts. They will talk to the lenders and creditors to settle your accounts.
Who is a liquidator?
It is the officer or person who is hired to take off the liquidation process while a company is going through its end days. They can be hired by the organization itself, or appointed by the company if the issues have gone to court.
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What are the benefits of hiring a liquidator?
Hiring a liquidator has multiple benefits. Keep reading to know about them.
End all the legal issues
If you are hiring a liquidator, your company sure is coming to an end. Therefore, you must need a plan B to settle on an immediate basis. Therefore, if you spend precious time on the legal process to solve everything, it won’t be very fruitful for you. On the other hand, hiring a liquidator will take the tension from your head and let you concentrate on the next project that you want to do.
Help you cancel all your lease arrangements
They do not only solve the legal issues, but they can help you to settle your debts and clear your stocks. Also, they terminate the agreements based on the need. They can also clear your stocks by selling your products to clear your debts.
Minimize all the debts
When the organization is coming to an end, you will get to deal with multiple accounts. You would not find everything valid. However, it may become hard to identify which are the valid ones. When you hire a liquidator, he or she will help you reduce the debts. Only the valid ones will be entertained.
Staff can claim payment for redundancy
When you hire a liquidator, your staff will get their due too. The liquidator helps your staff to claim for the redundancy payments. Along with holiday pays, they will get all their uncollected wages. In fact, the insolvency partner will help them get the redundancy by selling the assets of the organization.
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In short, they take care of all these aspects:
They sell all the assets remaining in the company
Settle all the liquidation costs
Pay the creditors
Remove the records of the organization from the register
Wrap up all the contracts
Interview and find out the valid cause of the liquidation
Take care of the shareholders
What is the cost of hiring a liquidator?
The cost of hiring a liquidator depends on various aspects. Such as:
It is highly based on how complex the liquidation process is for your company
It is also based on the number of assets that need to be sold
How much effect the liquidator works reflect on their fee charge
Apart from all these, the more they have to make meetings with the creditors, the more they will charge.
Conclusion!
Liquidation is a process that needs a vast knowledge of all the legalities. Therefore, always look for the best one in the business when you are in trouble. The best liquidator will take you out safely from the situation by reducing the liquidation cost as much as possible.