Partnerships offer special challenges, as this article reviews along with other kinds of liquidations.As a partnership has no separate legal identity, it may be dissolved by an agreement between the partners or by notice of dissolution given by one partner to the others.The secured creditors would take over the assets that were pledged as collateral before the loan was approved.
Following liquidation, the company literally ceases to exist.
An individual may also decide to liquidate assets, such as house and land for cash.
The cash could then be used to boost his or retirement nest egg or pay off creditors.
As said earlier, not all liquidation is as a result of insolvency.
A company may also undergo a voluntary liquidation, which occurs when shareholders of the company elect to wind down the company.