Before you commit yourself to a position of liquidation or bankruptcy, then it is important to get some debt advice to avoid liquidation. Bankruptcy is a situation that can take many years to overcome - and there may be alternatives that you are unaware of. With the right advice, you can make the most appropriate decision for your individual situation and ensure that you avoid going into liquidation if there are alternative steps you could be taking.
Before you begin the process of liquidation of your assets, the first thing you need to know is precisely what liquidation will mean to you - whether you are entering into this as an individual or a business entity. As an individual, liquidation will most generally mean forfeiting of any possessions that have been used as security against loans, and may also include the reclaiming of other possessions (assets) in order to repay any debts incurred. Getting advice is important, because there are limits to what you are expected to give up to creditors. If you want to retain as many of your most personal possessions as possible, then there are legal avenues for this which an advisor can help you with.
Getting Debt Advice to Avoid Liquidation
Before you enter into the process of liquidation, seeking professional advice is an important step to take. Speak with a debt liquidation broker about your situation. This is a financial industry professional who can provide you with guidance on a number of points. Insolvency can impact your ownership of your home, the control you have over other assets, it can be noted down against your credit report for a number of years and it could potentially impact upon your employment and ability to secure finances for a number of years.
As a business, the process of liquidation is slightly different and the structure of the business, whether run as a company, partnership or sole trader may also impact upon the insolvency process and the rights of both the creditors and the business owner or operator. If you have a small business and particularly if you are self-employed, then it is vital to get assistance. Many self-employed people often find there is a degree of overlap between personal and business possessions, so it is essential to understand what your liability is if you go into liquidation. Seek out appropriate debt advice to avoid liquidation and ensure your rights are protected if bankruptcy is the only option left.
Bankruptcy is a complicated legal procedure and it should be seen as a last resort when all other avenues of financial rescue have been exhausted. If you are facing liquidation, then be sure to see debt advice to avoid liquidation before you take the final steps and commit to this path. You may have a number of options you are unaware of, options which a professional can advise you on. You will also find that following the advice of a professional debt broker will help you to hold on to those assets you own which are not required to be liquidated if you do proceed in this direction.