Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries. The assets and property of the company are redistributed.

What does it mean if a company goes into liquidation?

When a company goes into liquidation its assets are sold to repay creditors and the business closes down. The company name remains live on Companies House but its status switches to 'Liquidation'. ... Insolvent liquidation occurs when a company cannot carry on for financial reasons.

Is liquidation good or bad?

Here are some more benefits to liquidation: You'll eliminate the chance of breaching your directors duties which is strictly against the law. You'll avoid the risk of your company trading while insolvent - that is not being able to pay their debts as they fall due.