Office liquidation is when a company goes through having to shut it down through a legal procedure. It is essential to use professionals who provide specialized liquidation services when going through the office decommissioning process of removing business assets. Living in New York City, New Jersey, and Connecticut would mean the process would be more straightforward if you find specialized services with Commercial Office Liquidations in the immediate area.
Reasons For Closure
A company would have to close down due to having to pay off debts to creditors or running at a loss. There are different steps to the liquidation process. Generally, the stages before it is done, the company would do a voluntary winding up or be placed under a winding-up petition.
Voluntary Winding Up
– Go for environmentally friendly disposal methods.
– This means that all obligations to partners and clients are being met or paid off.
– This is on a voluntary basis before there is a company dissolution or liquidation.
Winding Up Petition
A winding-up petition or compulsory winding is when a court order is issued & it has become mandatory to pay off the debts owed. After the court order has been issued, the liquidation process begins. An insolvent company, meaning that it is running at a loss, would have been issued a compulsory creditors liquidation after being given a winding-up petition.
Compulsory Creditors Liquidation
– Needs to pay off all debts owed.
– Liquidators are usually appointed if it is compulsory, not chosen.
– Voluntary closure of business.
– The assets sold can be distributed to shareholders.