Written by James Keenen. Find the latest information on Insolvency as well as Liquidation
One of the ways that a business can use to avoid bankruptcy is to go through liquidation and sell off company assets to pay off their creditors. It is becoming more and more common now, due to the declining U.S. Economy and the changing of bankruptcy laws. When a company goes through liquidation, it does not mean that it is out of business for good but for the time that its assets are being liquidated, it will have to temporarily stop doing business.
There are three different types of liquidation procedures that are used and the first one is called “members voluntary liquidation.” With this liquidation process, all of the shareholders or partners unanimously agree on the liquidation and the value of the assets to be sold off exceeds the amount of debt that is owed. The second common liquidation procedure is referred to as “creditors voluntary liquidation” and it also is agreed upon by the partners or shareholders.
The difference between members voluntary and creditors voluntary liquidation is that with creditors voluntary, the amount of debt that is owed exceeds the total value of the companies assets that are to be sold off. The third type of liquidation process is called “compulsory liquidation” and it is ordered by a court. The first thing that takes place when the liquidation process begins is that the controls of the company are handed over to a receiver, who will over see the actual liquidation process.
All business transactions are halted and all parties are notified, including debt holders and company shareholders and partners. Then the process begins to inventory and sell off company assets,k so as much of the companies debt can be paid off as is possible. The reasons that a company can end up in liquidation are many but they are all done one of the three listed ways. Many companies emerge from the liquidation process to move ahead and prosper and are able to make a new start without being burdened by its debts.
- Related Videos
- Related Articles
- Ask / Related Q&A
- What Is Bankruptcy Liquidation?
- Chapter 7 Bankruptcy: Liquidation Or Straight Bankruptcy
- Bankruptcy: Liquidating Your Retirement Savings
- Bankruptcy and Gift Cards Explained
- Helpful Bankruptcy Advice
- Bidding at a UK Bankruptcy Auction: Below is Bid Offering
- Bankruptcy No Longer Means - No Mortgage
- Why Should I File for Chapter 7 Bankruptcy?
INDIAN BANKS AND THE GLOBAL CHALLENGES
By: R.Yuvarani | 04/07/2009by Indian Merchants' Chamber and IBA at a juncture when financial services sector across jurisdictions is going through a strong phase of increasing globalisation. Integration of economies leads to integration of financial markets catalyzing the globalisation process. The growing role of the financial sector in allocation of resources has significant potential advantages for the efficiency with which our economy functions.
GLOBAL CHALLENGES IN BANKING
By: R.Yuvarani | 04/07/2009Financial Sector reforms initiated in the country as a part of the economic reforms since the year 1991, has brought about revolution in the structure of banking environment. While deregulation has opened up new opportunities for banks, liberalization has intensified competition in the banking industry by opening the market to new foreign and private sector banks. Declining interest rates and reduced lending margins have thrown up new challenges to banks, particularly public sector banks.
Banking at Your Fingertips
By: CODANK WEB DESIGN | 03/07/2009If you haven’t heard, traveling all the way to the bank to make transactions is a thing of the past. No more writing checks and mailing them to the power company or calling your local branch to check on your account. With the advancement of technology, online banking has granted us the ability to save that much needed time into a few simple clicks.
CHANGING TRENDS IN INDIAN BANKING
By: P. Pirakatheeswari | 03/07/2009Faced with mutually interdependent forces of competition, regulation, technology, and expectations of the customers, banks are set for a range of roles. The future mantra: intelligent integration.
CHANGING TRENDS IN INDIAN BANKING
By: P. Pirakatheeswari | 03/07/2009Faced with mutually interdependent forces of competition, regulation, technology, and expectations of the customers, banks are set for a range of roles. The future mantra: intelligent integration.
Accounts & Deposits
By: bankbars | 29/06/2009Accounts and Deposits are two most important entities that are associated with every transaction that you make in a financial institute. Your money, investments, savings and all financial regulations are defined by these entities. When you open an account you deposit money to start of things and then gradually precede allocating your finances into different channels like a fixed/ term deposit etc.
What Qualities are Indeed Best for Secure Banking
By: Editorial Management | 29/06/2009One of the biggest concerns today with regard to banking is the security of the funds deposited. Whether with regard to the economic crisis, or concerns having to do with utilities such as internet banking, consumers justifiably want to make sure their money is secure. So, what are some important questions to ask banks, as well as telling qualities to look for when seeking the most secure banking services?
Anti Money Laundering Compliance Solutions
By: Edna Paltrow | 27/06/2009Anti Money Laundering is a business intelligence driven logical data model that seamlessly adapts to the compliance requirements of Banks, Insurance Firms, Money Exchanges and other financial institutions.
The Skinny on Good SEO
By: James Keenen | 27/11/2007 | SEOOne of the many things that people find out when they begin to explore the Internet with the intention of generating some income is that websites have to be promoted. Simply launching a website and then sitting back waiting for it to become successful is not the way to go, because its like standing on the side of a road with everyone whizzing right by you. The Internet is a highly competitive place to do business and if you don't have a good grasp of the fundamentals of SEO then everyone who doe
The Goods on Insolvency
By: James Keenen | 27/11/2007 | FinanceOne fact that many people are unaware of, is that most people who venture out on their own in the business world encounter some sort of business failure along the way. Its a fact and the word “failure” only applies to the business itself and not the entrepreneur who launched it. How quickly and expediently one handles insolvency can determine how quickly they can get back to business and how good their standing is with their creditors.
The Fundamentals of SEO
By: James Keenen | 27/11/2007 | SEOSearch engine optimization or SEO is something that anyone that has a website should know about. The reason for this is that the Internet has become very competative and is becoming more competetive with each passing day. What search engine optimization or SEO actually describes, is the process of making your website appear more prominently in the search engine results when someone types in a keyword or phrase.
Some Interesting Facts on Liquidation
By: James Keenen | 27/11/2007 | CreditIn recent times more and more people have found themselves involved in, or effected by a liquidation or insolvency process. If you are one of these people then you may be a bit confused and on the surface it can sometimes seem worse then it actually is. The term “liquidation” describes the process by which a company goes through when it sells off assets to raise money to pay off creditors. For many companies liquidation is a new beginning, when they can get old debts off their back and get the b
Some Brief Information on SEO
By: James Keenen | 27/11/2007 | SEOMore and more people are now having websites designed and launched on the Internet but not everyone is aware of how to properly promote their website, which is very important to know. SEO stands for “search engine optimization” and what is refers to is the positioning of a website when it appears in search engine results. The best place to have your website listed is at the top of the first page that appears when a keyword or key phrase is typed into a search engine, because this is where people
Great SEO Tips That Work
By: James Keenen | 27/11/2007 | SEOIf you have a website on the Internet then you should know about search engine optimization or what is commonly referred to as SEO. Without SEO your website will be listed at the bottom of website listings when someone types a keyword into any one of the search engines that are on the Internet. The best place to have your website listed is at the top of the first page that appears when someone types in a keyword or key phrase when they are searching the Internet for website listings.
Exactly What is SEO
By: James Keenen | 27/11/2007 | SEOMore and more people are having websites designed and launched on the internet for a number of reasons. While some people use their website to actually market their products or services, others use their website as an advertising bill board for clients and potential clients to visit and see what they have to offer. This is not to say that all websites are business oriented, as many websites out there are simply for entertainment or for getting messages across to viewers.