Simple Liquidation blog

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 contract...