A liquidator is an important figure when a company is going bankrupt. With legal authority from courts, shareholders, or creditors, a liquidator has the responsibility of selling what assets are left to get as much return for the company as possible. A liquidator’s goal is to wind up the affairs of the bankrupted company and to pay creditors in the order of priority.

A liquidator’s authority begins when it is first appointed by a court, shareholders, or unsecured creditors. From there the liquidator will take control of the company’s assets and determine the strategy for how to best liquidate them. The liquidator will also be expected to maintain the company’s records and file all appropriate legal paperwork.

The liquidator will contact potential buyers, give advance public notice of the sale, negotiate the best prices, arrange delivery of assets, and ensure the proceeds are distributed properly. Depending on the type of liquidation, the liquidator may also be in charge of running auctions, investigating the company's history, providing discharge forms to its employees, and other activities.

When the company’s affairs have been fully wound up, the liquidator must file a final report with the court or entity that appointed them outlining how the liquidation proceeded, how much was realized, and how it was distributed. The liquidator will then be removed from the case and receive their final payment.

The role of a liquidator is an essential part of the bankruptcy process that helps ensure the maximum return to creditors. Although voluntary liquidations or sales of inventory do not always require a liquidator, a professional has the experience and knowledge to handle complicated asset liquidations and maximize the value of what is left.