Bankrupcy Saved My Life

Is There Life After Liquidation?
“Property developer Cathy Pearce’s family company, Cueclass, is to be wound up for non-payment of tax only days after she lodged her latest claim against former business partners.” ~ The Advertiser, May 2008
Please Note: this article in no way acts as legal advice, and it is advised that you seek legal assistance if you are facing the possibility of liquidation.
Liquidation can be simply defined as the ending of a company, or a part of it, so that the assets of that company can be re-distributed in order to pay off any outstanding debt and creditors. Other terms for liquidation that you may encounter are dissolution, winding up, administration or receivership.
Liquidation is much like bankruptcy in that it can be voluntary or forced.
A voluntary liquidation of a company occurs when the business owner realises that they cannot pay their debts when they are due. When this happens, the business owner then seeks out the services of an Insolvency Practitioner, who is an independent party that dissolves the company’s assets and pays creditors as best they can from these assets.
In addition, the insolvency practitioner also protects the business owner from harassment from their creditors, and other persons who are owed money, or goods.
Forced liquidation, also known as compulsory liquidation, occurs when the creditors demand payment from the business and apply to the court for an order to dissolve the company. For many business owner’s, liquidation can mean different things, most of which are emotional. These can be defined as follows:
  1. Many business owners feel that they have failed, and that they have let people down, which brings about feelings of shame and disappointment;
  2. There maybe a need to desperately hold onto their company, especially if the business owner has worked extremely hard to develop the company in the first place;
  3. The business owner may feel that they need to save their company, especially if the business is family owned and operated, and has been in the family for some time;
  4. The owner of the business may experience a feeling of relief, as the difficulties that they have encountered are rectified;
  5. Many business owners feel a need for resolution, so that order can be brought about and a solution to their on-going problems found; and
  6. The business owner feels a need to move on and put a negative experience and outcome behind them.
Overall, the loss of a business can be compared to the loss of life, where on many occasions a business owner will feel the same emotions as someone who is grieving, which are as follows:
  • Denial;
  • Anger;
  • Bargaining;
  • Depression; and
  • Acceptance
For many business owners, once they have grieved over the loss of their business they are able to move on, but for others, they will mourn the loss of their business for longer, and may possibly need to seek advice on how to overcome the ordeal that they have just experienced. However, there is life after liquidation, and you will be able to rebuild your life, no matter how large the loss is that you have experienced.  
Article Source:Life After Liquidation (2010)Rebounding from Business Collapse: available online at www.lifeafterliquidation.com
“When your businesses goes into liquidation you feel as though you have failed, and you grip onto everything that once was in a desperate bid to save something, no matter how small.” Cathy J. Pearce, July 2010
Article Author Bio
Cathy Jayne Pearce owned more than 30 companies in Australia, was listed on BRW’s rich list with a wealth of $19 million, and was considered as the South Australian property princess during the 1990’s, as she redeveloped hundreds of run-down units and gave them a new lease on life. Today, Cathy’s businesses are insolvent and Cathy has been declared bankrupt, however, Cathy considers her first-hand knowledge of business and its collapse as one of her greatest assets. Cathy Jayne Pearce is the author of ‘From Riches to Rags’, an autobiographical account of her journey from riches to rags, which offers hints, tips, and advice on everything life has thrown at her. For more information on Cathy, or her book, please visit: www.richestorags.com.au
 
  
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36-40
Aug 14, 2010