Liquidating agents

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In particular, the directors and officers of an insolvent corporation or LLC (one whose assets are worth less than its liabilities) have a statutory duty to minimize losses to the company's creditors.

But no matter how your business is organized, you commit fraud if you give away or sell business assets at below market rates or put your interests ahead of those of creditors.

As to accounts receiveable, don't forget that they will be much less valuable after you close.

So make a high-energy effort to collect them now, or sell them accounts receivable to a factor, or debt buyer, who will either buy your accounts receivable at a fraction of their worth or, for a fee, pay you a certain percentage of the debt up front and the rest when they collect it.

Your list should include: For property, write down a description of each item or category of property, the condition of the property, and who technically owns it—that is, what money was used to purchase the property—your personal funds, a partner's personal funds, or business funds.

In addition to tangible property, you may be able to sell intangible property that your business owns, such as: As you liquidate these assets, you'll want to record on this list how you tried to sell each piece of property (save copies of ads or Web listings), who ended up buying it, and the amount you received.

(Get more information on accounts receivable factoring.) Don't cheat your creditors.

Do what you can to get a good price for your business assets—not just for yourself, but because you have a legal responsibility to your creditors to try to get fair market value for your assets.

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If you have numerous assets with significant value, contacting a business broker or professional liquidator might be a good idea.You'll want to try to get the secured creditor or lessor to settle for less than the amount you owe on the loan or lease; see Nolo's article Paying Off Debt When You Go Out of Business.Request refunds on your workers' compensation premiums and liability insurance premiums, if your policies' terms allow it.Competitors may also be interested in buying your intellectual property (trademarks, copyrights, and patents) and any works or jobs in progress, as well as your customer lists and company name or product names.You might find buyers for fixtures, furniture, and equipment by listing them on websites like e Bay, craigslist, or bid4

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