After your assets are sold and distributed to creditors, you have no legal further obligation to pay these discharged debts, even if the sale of nonexempt assets did not produce enough cash to fully repay the full amount you owed.
Liquidation refers to the procedure in which a limited company is brought to a close by an appointed Insolvency Practitioner (Liquidator).
Think of the ship as the company and the directors as the ship’s crew.
So, if the company is wrecked for any reason, the crew can leave the ship unharmed.
However, obtaining legal relief from debt often results in serious financial consequences.
One of the most serious consequences of many Chapter 7 bankruptcy petitions is the process of liquidating your debt.