what is a liquidator 
a liquidator is a person or entity that liquidates something a liquidator is specially appointed to act on behalf of a company in various capacities they are legally empowered to wind up a company s affairs when it is closing typically when the company is going bankrupt when things get to this point the liquidator may represent companies in lawsuits or sell off their assets for cash or equivalents the resulting funds are used to pay off the company s debts liquidators may also defend companies in lawsuitsunderstanding liquidatorsa liquidator is a person with the legal authority to act on behalf of a company before it closes are generally assigned by the court unsecured creditors or the company s shareholders they often step in when a company declares bankruptcy their primary function is to generate cash for a variety of reasons including debt repayment a liquidator has several key responsibilities the first is to take control of the organization s assets which are pooled together and sold off individually cash from the sale proceeds is then used to pay off the outstanding debt held by unsecured creditors another key function of liquidators is to bring and defend lawsuits other actions include collecting outstanding receivables paying off bills and debts and finishing other corporate termination procedures a liquidator s authority or power is defined by the laws where the role is assigned they may be granted complete authority over all business matters until the assets are sold and the debts are all paid off while others are granted liberties while under the court s supervision the liquidator has a fiduciary and legal responsibility to all parties involved the company court and creditors considered the go to person when it comes to making any decisions about the company and its assets the liquidator must keep them under their control to ensure they are properly valued and dispersed after being sold the liquidator issues any correspondence and holds meetings with the company and its creditors to ensure the liquidation process goes through smoothly chapter 7 of the u s bankruptcy code governs liquidation proceedings solvent companies may also file for chapter 7 but this is uncommon liquidators and the liquidation processmany retailers go through the liquidation process under a liquidator to dispose of their assets because of a looming bankruptcy the liquidator assesses the business and its assets and may decide when and how to sell them new inventory shipments are stopped and the liquidator may plan for sales of the current stock everything under the retailer s banner including fixtures real estate and other assets is sold the liquidator organizes the proceeds and pays off the creditors liquidators are not only assigned to retailers other businesses that face trouble may require a liquidator they may be required to deal with issues after a merger takes place when one company buys out another for instance when a merger takes place one company s information technology department may become redundant the liquidator may be assigned to sell off or divide the assets of one becoming liquidatorliquidators typically have a degree or background in finance and or accounting this allows them to review and file financial reports and other key documents such as tax returns they can also use their academic and professional experience to help them value assets these professionals must also possess the following skills since they have a fiduciary responsibility liquidators must also act ethically and responsibly to ensure they follow regulations and meet the needs of the company 