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There are a number of issues that arise in relation to a liquidation be it voluntary or forced in relation to a trading entity. This often involves the use of insolvency practitioners and dealing with receivers and liquidators.

It is important for proprietors to obtain professional advice as early as possible as often events leading to a liquidation/receivership/winding up have caused significant stress to be borne by the proprietors and they may have difficulty in clearly identifying the facts and considering these when determining what are the preferred options available.

There is often a tendency for a Director to attempt to trade out of an insolvent situation where there is no realistic prospect of this being achieved. In such circumstances expert professional guidance is required to ensure Directors do not assume personal liability.

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