Filing A Claim For Liquidation Or Solvency

In Singapore, consumers and businesses have the opportunity to settle their debts quickly. The most effective option is to start a claim for liquidation or solvency. These claims take up to six months to process; however, some claimants can complete them in three. The following are details about what happens when consumers or businesses file a claim through liquidation lawyers in Singapore.

Assessing the Consumer’s Assets

The attorney reviews the consumer’s assets to determine the total value achievable through a sale. They may also consider the opportunities through possible auctions as well. The consumer’s debts must exceed the total value of their assets or net worth. The process enables the court to seize the individual’s assets for sale to settle their debts.

What Does Liquidation Mean for Business Owners

Any business owner that enters into the liquidation process must provide the court with all assets and properties associated with their company. All assets are sold completely to settle all debts accumulated by the company. Once all assets are sold to repay these debts, the company no longer exists. Any incoming profits that are presented prior to the end of the process are seized to pay off the company’s debts.

Scheduling the Sale of Assets

The assessor assigned by the court manages the sale of all assets. As these assets are sold, the assessor distributes the funds to the creditors to settle the debt. If there are any remaining proceeds after the identified debts are paid, the remaining balance is distributed among creditors that accepted a lower final payment value.

Completing the Bankruptcy Claim

Once all debts are settled, the claim is discharged. All debts that were discharged are no longer the responsibility of the consumer or business. They are listed as paid in full. These creditors cannot take any further legal action against the consumer or the business.

In Singapore, consumers and businesses settle their debts quickly by filing a liquidation claim. The claim doesn’t take years to settle and requires the sale of assets to complete. An assessor handles the entire process for the consumer or business. Any consumers or businesses who want to start a claim contact a lawyer now.