Advantages and disadvantages of liquidating the assets

Rated 4.14/5 based on 933 customer reviews

Another advantage of cash is that it prevents you from liquidating assets from other classes - such as stocks or bonds - when you've got a large expense coming up.

This means you are no longer liable for any subsequent payments that may have comprised part of your original arrangement.

However, all subsequent liquidation costs (including debt/outstanding creditor repayments) will be met through the sale of company assets.

This generally makes liquidation a cost-effective option.

Unless you have some form of personal liability for company debt, your creditors will not be able to initiate court proceedings against you.

You can therefore show that your company was closed due to voluntary action, rather than forced to close due to disgruntled creditors petitioning you through the courts.

Leave a Reply