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Explainers · 12 października 2026

What a status of “in liquidation” means

Liquidation is not always bad news. We explain voluntary and compulsory procedures.


A company in liquidation is being wound up: its assets are sold, its debts paid as far as possible and the company is then dissolved.

Voluntary liquidation

The owners decide to close a solvent company — for example after a sale or a retirement. Creditors are usually paid in full.

Compulsory liquidation

A court orders the liquidation, typically on a creditor’s petition. Creditors may receive only part of what they are owed.

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