In Singapore, businesses have a clear solution for overwhelming volumes of debts. These solutions include the liquidation process. This process allows them to break down the company into individual assets. The following is a review of the pros and cons of this process for business owners.
What are the Pros of Liquidation?
The major advantage of liquidation is that it allows the business owner to eliminate their debts quickly. This process is over within a few months. Additionally, the court assigns an assessor who manages the entire process for the business owner. All the business owner has to do is to provide deeds and titles for all assets associated with their company. The assessor places the assets on the market for a quick sale. They collect all proceeds from these sales and distributes them to the creditors. The business owner can walk away from the entire process debt free with little to no effort.
What are the Cons of Liquidation?
The cons of the liquidation process start with the fact that the company must shut down. They cannot operate the business identified in the claim ever again. They cannot use any of products that are manufactured by this company. They cannot open a new company immediately following the liquidation process. Any debts that weren’t settled in the claim are still the responsibility of the business owner. They are required to pay off these debts or face legal action.
How can They Start Liquidation?
They must present a list of their debts as well as all debts that belong to the business owner. The assessor reviews these documents to determine if the assets can accumulate enough proceeds to settle the debts. The creditors have the right to deny inclusion of their accounts in the liquidation process.
In Singapore, businesses need clear solutions for their debts. They can manage the settlement of all their debts through liquidation. This process involves the sale of all assets and the distribution of proceeds to creditors. However, it requires the total shutdown of the company. Business owners who want to learn more about this process contact a bankruptcy lawyer in Singapore from IRB Law today.