The company’s operations are brought to an end, and its assets are divvied up among creditors and shareholders, according to the priority of their claims. Not all bankruptcies involve liquidation; Chapter 11, for example, involves rehabilitating the bankrupt entity and restructuring its debts.
This is not the same as its debts being discharged, as happens when an individual files for Chapter 7.Items that are leased must be returned to the owner and items that you owe more money on than you can sell them for must either be repossessed or kept and paid off. If you need help, contact an appraiser and ask for help placing a value on items. Before offering the items, however, make sure you understand the return policy. Have a sale, offer items for sale online or contact other businesses you believe may be interested in your items and let them know you are selling items at a large discount.If a company will only give you credit or a part of what you paid, then you may be better off trying to sell it yourself. If you have to liquidate quickly, you will likely need as much cash as possible quickly, so offer deep discounts if you can. Hire a liquidation company if you need help or are uncomfortable selling off your business.On a direct-to-consumer retailing basis, the inventory can be sold through a company-owned liquidation store or stores, or monthly inventory liquidation sales can be advertised and held over a few days in short-term rental premises.However, there is a down side to this business, which is purchasing inventory that is difficult to sell regardless of price.Whether you are simply retiring or you have to close down your business for less than pleasant reasons, liquidating your business and equipment can be a large job.