What is an involuntary liquidation?

Involuntary liquidation is a process that happens when creditors take legal action to force a company to liquidate their assets to pay off its outstanding debts. This process is used when a company has failed to meet its financial obligations and a court orders creditors to seize its assets. In New Hampshire, creditors can start the involuntary liquidation process by filing a complaint with the Superior Court and serve the company with the complaint. After the company is served, the court will hold a hearing to decide if the company should be put into involuntary liquidation and issue a court order. Once this court order is issued, a trustee is appointed to manage the liquidation process and recover as much money as possible for the company’s creditors. The trustee will then organize and sell off its assets, including inventory, equipment, and real estate, to pay back the creditors. Once all the assets have been sold, the company is automatically dissolved and the money is distributed among the creditors. This process of involuntary liquidation can be used to help creditors get what they are owed, but it also leaves a business with no assets and no chance of recovery.

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What is an involuntary liquidation?

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