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Liquidations

This is a remedy which requires careful consideration. An unsecured Creditor generally gains little by putting a Debtor company into liquidation as the company often has large preferential debts due to the Revenue or secured creditors which take priority.

The threat of Liquidation may make a trading company settle with you if it's financial problems are not too great but for a company in serious difficulties, liquidation will not generally assist an unsecured creditor.

This is a good reason to get personal guarantees from Company Directors before you give credit to a company.