The assessment begins with a complete list of all current and expected payment obligations. The due date, amount, creditor, and any possible security should be documented clearly for each liability. These should be compared with available cash, collectible receivables, and realizable assets. It is not sufficient to compare only the overall accounting values, because timing and the actual availability of funds are decisive. Costs arising from the cessation of business and liquidation must also be included in the payment plan. Existing debts do not, by themselves, rule out voluntary liquidation; the key question is whether they can be duly paid. Uncertain incoming payments or assets that are difficult to realize should not be counted as funds available on time without a sound basis. The assessment should cover both the current situation and expected developments during the winding-up process. If it becomes clear that due obligations cannot be covered or that future solvency is at risk, the distinction from insolvency must be assessed separately. The findings, assumptions, and documents used should be recorded before the liquidation resolution is adopted.
Assessing Solvency Before Liquidating a Company in Georgia
Before a voluntary liquidation in Georgia, it must be assessed whether the company can meet its due liabilities with available funds and realizable company assets. If the assessment finds that the company is currently or foreseeably unable to pay its debts, voluntary liquidation must be distinguished from rehabilitation or insolvency proceedings.
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