What is Liquidation?
In its simplest form liquidation is a formal process which brings about the closure of a limited company.
As part of the process all company assets will be sold – or ‘liquidated’ – for the benefit of outstanding creditors and/or shareholders before the company is struck off – or dissolved – from the register held at Companies House.
Once this has happened the company will cease to exist as a legal entity.
Any outstanding debts owed by the company will be written off unless the director has personally guaranteed these borrowings.
