What Happens to Contracts & Lease Obligations After Liquidation?

When a company goes into liquidation, directors are often left wondering what happens to the contracts and lease obligations they’ve signed while trading. Whether it’s a commercial lease, supplier agreement, or equipment finance deal, these commitments can feel like a weight hanging over you.

Understanding how these are handled is an important part of the liquidation process. This guide breaks everything down in clear terms and explains how the team at Simple Liquidation helps directors navigate this complex area with confidence.

What Is Liquidation?

Liquidation is the formal process of closing down a company and distributing its assets to creditors. There are two main types:

Creditors’ Voluntary Liquidation (CVL) – where directors choose to close an insolvent company

Compulsory Liquidation – where a creditor forces closure through court proceedings

Once liquidation begins, a licensed insolvency practitioner is appointed to take control of the company. That includes managing contracts, assets, liabilities, and communications with creditors.



Simple Liquidation was designed to provide directors like you with a quick and simple solution to liquidate a company, no matter the size or industry. Our experienced team ensures the process is handled legally, efficiently, and with minimal stress for you as a director.

What Happens to Existing Contracts?

Contracts do not simply vanish when liquidation begins. Each one needs to be assessed by the insolvency practitioner to determine whether it should be continued or terminated.

This process involves deciding whether to adopt or disclaim each contract.


 Lease Obligations After Liquidation in the United Kingdom

Location: United Kingdom

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