What is Liquidation?
Liquidation is a legal process whereby the company and its affairs are placed under control of a liquidator, who must realize the assets and divide them amongst the creditors fairly as stipulated in the Companies Act. The liquidator must make sure that the company is dissolved in an orderly manner.
The new Companies Act. no 71 of 2008 states that if the directors of a company or members of a CC have reasonable grounds to believe that the business is in financial distress, they must either:
How long does the liquidation process take?
From date of receiving instruction, it may take anything between 7 days and 4 weeks to get the liquidation in order, depending on which process we use.
A Debt Counsellor will help alleviate your financial strain; they are in a position to negotiate new debt restructure schemes, time-scales and even interest rates with credit providers. New debt restructure amounts will be based on what funds you have only after your necessary expenses have been paid – ensuring that your debt becomes affordable for you and your family.