Liquidation – The alternatives to liquidation

The administration process does not suit all corporate circumstances. Businesses should consider a comp any voluntary arrangement or administration as alternatives to liquidation.

A corporate voluntary arrangement is when your company makes an agreement with its creditors by proposing an arrangement by which to settle its debts which has been approved by the court. In a corporate voluntary arrangement, your company has formally agreed terms with its creditors on how to settle its debts.

Your business is “in administration” when an administrator has been appointed to manage your company’ s affair s, business and property for the benefit of your creditors. The administrator is an insolvency practitioner and has the status of an officer of the court, although they might not have been appointed by the court.

When your company goes into administration, its credit debts and certain other debts are all treated together. Your company then makes a single payment to the administrator every month, which is then divided among the creditors.

More information

• Liquidation – What is liquidation?
• Liquidation – The liquidation process
• Liquidation – Voluntary and involuntary liquidation
• Liquidation – The disadvantages of liquidation
• Liquidation – The alternatives to liquidation
• Liquidation – Winding up a company
• Liquidation – I am owed money by a company in liquidation
• Liquidation – Insolvency and liquidation
• Liquidation – The advantages of liquidation