Skip to content

How to liquidate a company with debts

October 4, 2019
How to liquidate a company with debts

When you proceed to liquidate a company and there are still creditors outside the company, that is, debts, you must proceed to settle them. If the company has limited liability, they can go against the company’s commercial assets, while if it has unlimited liability, you can also go against your personal assets until these debts are settled. In the case of a company that cannot pay its debts and is in a bankruptcy situation and suspension of payments, the bankruptcy proceedings will proceed. These are the options, we will explain to you so you know how to liquidate a company with debts.

Pay debts with unlimited liability

In the case of freelancers, communities of assets, civil societies or capitalist partners of companies. It will respond to debts with commercial assets first and civil assets later if necessary.

Pay debts with limited liability

In this case, only the commercial assets will be answered up to the limit of their contribution.

Creditors Contest

It always requires the judicial process and can be voluntary, that is, carried out by the administrators themselves, or forced, or through a creditor.

The contest consists of 4 phases:

  • Prior acts, up to the admission car for processing.
  • Common phase, until the bankruptcy report.
  • Resolution phase, agreement to continue with the settlement activity.
  • Determination of liability.

In the first three phases they organize the finances of the entrepreneur and in the last one they try to debug r