Liquidation – This is where a company has reached the point where it is insolvent and there is no alternative but to wind it up voluntarily. For example, where the deficit to creditors is too great to deal with by alternative means such as a Company Voluntary Arrangement. A liquidation need not be the end of the road though, in fact if there is still a viable core business it is possible for the business and assets to be sold by the liquidator and the purchaser effectively then starts from scratch with a clean sheet.