Med B Films

Liquidation is a condition where a company which has failed to meet financial obligations is taken over by a creditor, who assumes the position of settling the creditors money, as well as meeting other financial obligations of the company, for example payment of the shareholders. Liquidation means that the company stops to exist. Alternatively, businesses suffering from the condition where they cannot meet their financial obligations, can apply for insolvency to win a chance to survive again in the market. Liquidation comes in with the stigma among other dangers such as the death of the company and humiliation of the directors who may be suspended from acting in such capacity for a given period. Company voluntary arrangements or CVA avails this option through a legally identified and recognized procedure. Company voluntary arrangement is a plan developed by the company through an advice from the insolvency practitioner. The money is paid to creditors within a specified period of time.