Some companies are so far in debt that they can’t continue their business operations. They are likely to "liquidate". Their assets are sold for cash by a court appointed liquidator who is an IP. Administrative and legal expenses are paid first, and the remainder goes to creditors.

Secured creditors will have their collateral returned to them. If the charged asset does not realise sufficient funds to repay them in full, they will be grouped with other unsecured creditors for the rest of their claim. Unsecured creditors will be notified of the liquidation and should file a claim in case there is money left for them to receive a payment. The order of priority of creditors is the same as set out above in respect of Administration Orders.

Shareholders generally don’t receive anything in return for their investment. But, in the unlikely event that creditors are paid in full, shareholders will be notified and given an opportunity to file claims for anything left over.