Step back and wind things up in a cost-effective way with liquidation
If your company has too much debt, you’re worried about trading insolvent, and you can’t see a future for your business, liquidation is likely your best path forward. While it may seem like a negative solution or admittance of failure, it’s actually a cost-effective way to wind things up quickly and start afresh.
Liquidation is a formal insolvency appointment. It involves handing your company over to a registered liquidator who sells you assets, pays your creditors, and dissolves the business. The liquidation process typically takes around twelve weeks for simple companies, or up to 18 months for more complex ones.
There are three types of liquidation: creditors’ voluntary liquidation (CVL), members’ voluntary liquidation (MVL), and court liquidation, which is involuntary and typically issued if a statutory demand hasn’t been paid. CVL is the most common type for insolvent companies; for an MVL to go ahead for a solvent company, directors must agree on a Declaration of Solvency.
The liquidation process
Appointing A Liquidator
Whether you or creditors initiated liquidation, a registered liquidator must be appointed. Our first job is to publish a notice on the public ASIC Published Notices website and notify other stakeholders.
Processing Of Affairs
As liquidators, we attend to the practical matters of the liquidation. This includes selling company assets, investigating potential offences or inappropriate transactions, reporting to ASIC and creditors, and distributing any surplus to creditors or other stakeholders.
Company Deregistration
Once assets have been realised and funds distributed, we’ll lodge a final return to ASIC. ASIC will then deregister your company within three months.
Susanne
Liquidation
Small Business Owner
High Costs and ATO Payments
Mental Health Struggles
Find out how we helped Susanne
Our Solution
Appointed a Registered Liquidator
Susanne owned a small retail business selling clothes and gifts in a local shopping centre. Increasing competition in the area and online had reduced sales and rent had also increased. As a result, she found herself struggling to keep up with costs and ATO payments. She had taken some actions to reduce costs, including letting a part-time staff member go.
Susanne was feeling highly stressed and had been hanging on hoping to save the business but realised that it simply wasn’t viable anymore.
Positive Outcome
Susanne Finds Stability
No More Outstanding Debts
The assets sold generated enough money to pay a return to creditors and the process was low cost.
A Feeling Of Control
Because she decided to liquidate, Susanne felt in control and prepared for the outcome.
The Stress Was Over
Susanne was able to put the stress behind her and move forward in her life.
You're In Safe Hands
Judgement-Free
At Revive Financial, we care about the stress and impact being in debt has on your wellbeing. We want to help you take back control with no judgement, just a helping hand.
Financial Professionals
Revive Financial is proudly Australian owned and lead by a team of Chartered Accountants. Our qualified team have been helping Australians become debt free since 2005.
Industry Leaders
Our dedicated team have been trusted by over 10,000 Australians to help take back control of their financial futures. It's what we do best so you can rest assured.
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