The Top 5 Reasons People Choose Voluntary Liquidation
The idea of liquidation might be alarming. It’s terrible to think of losing all you’ve fought so hard for. You are unsure of what to anticipate. You probably don’t know what to ask to determine whether liquidation will benefit you. Many of our clients felt before consulting with us and deciding to liquidate. But once they choose, most of our clients believe that liquidation enables them to move on and enhance their lives.
So, here are the top five reasons why people opt for Voluntary Liquidation.
Remove the stress of continuous creditor pestering right away.
Creditors will continue to harass you for payment if you do not choose to liquidate voluntarily. Calls won’t stop coming in. Because going to court is a lengthy process and costs a significant amount of money; this might drag on for days or even months. You should be aware that once your company enters liquidation, you are no longer required to take calls or handle payment requests.
Direct your creditors’ attention away from you and toward the liquidator’s office.
The first action a liquidator takes is to inform the creditors in writing that the business is in liquidation and that they must contact the liquidator’s office. Liquidators notify creditors of the timelines and results they can anticipate from the liquidator. From then on, any attention to the company is directed to the liquidator and away from you. Creditors may contact only the liquidator for information. You are no longer required to respond to nonstop requests for money.
All legal proceedings end immediately upon the appointment of a liquidator.
You will be required to pay money for legal fees if you don’t liquidate and the company is a party to litigation or claims. However, civil procedures are automatically halted when a business is put into liquidation and cannot be resumed without the court’s permission. As a result, no more money will be spent on legal action.
Employees will benefit from the company’s liquidation.
If you have been unable to pay your employees’ wages and entitlements, you should be aware that when a company is placed into liquidation, those qualified employees can claim and collect entitlements under the Fair Entitlements Guarantee Scheme. The plan is not viable, and you might have to deal with unhappy employees if the business is not liquidated.
Being in a position to improve your health and personal relationships and get on with life
Voluntary liquidation relieves stress and puts an end to phone calls. You’ll be able to concentrate on what matters most: your health and social connections. You transfer your responsibility to the liquidator when you declare your business to be liquidated. You should get on with your life and make an income as soon as possible while taking care of your health and personal relationships and putting the company’s problems behind you.
Our advice at Australian Company Liquidations is tailored to your particular situation. We’ll review formal and informal choices with you and discuss which is best for you. Our objective is to arm you with unbiased information so you can make the best choice for yourself and your family in inevitably challenging circumstances. Call us at 1800 981 070 right now.