El blog de Maria

Liquidation is a last resort. Even though, this poor solution is preferable to the continuation of a company that will only bring more bad debt to the market.

 The liquidation process has these phases:  

1. - Liquidation opening at the request of a party. 
2. - Liquidation opening by the Judge. 
3. - Publicity of the liquidation commencement. 
4. - Liquidation operations.

1. - Liquidation at the request of a party: Either as an alternative to the agreement or, once the agreement fails, once the debtor sees the payment of those credits agreed as impossible, after the agreement has been passed.

 2. - If the liquidation is opened by the Judge or a creditor, this always needs to be a subsidiary solution

 In the liquidation phase, deferred payments are earlier terminated and payments of every nature are transformed into money payments. 

Even when being liquidated, the Act seeks the preservation of firms or productive units of goods or services integrated into the company through its sale as a whole, unless division is more convenient to the interests of the insolvency proceedings 

Payments to creditors are performed in the liquidation phase.  Credits against the estate are paid first, before those specially privileged. 

Christmas in Madrid 2007 by MnGyver at Flickr.com