Corporate Law

Insolvency proceedings may involve persons or companies in financial distress unable to pay their due debts. Among the common forms of insolvency procedures in the United Kingdom, individual bankruptcy and company liquidation are perhaps the two most familiar forms.

​

 

The elements of bankruptcy include:

1. Insolvency Analysis: Basically, this analysis deals with the inability of a person or business entity to pay his or her due bills or liabilities that exceed assets.

​​

2. Licensed Insolvency Practitioner: In such cases of insolvency, the owners are recommended to take suggestions from a licensed IP. He'll investigate the matter further and suggest the best possible option regarding this.

​​

3. Depending on the particular circumstances of a case, may advise the bankruptcies of persons or the individual voluntary arrangements (IVA) and company voluntary arrangement (CVA). - Any person can file for bankruptcy as a last result. Secondly, bankruptcy requires a filing with the courts through the submission of assets and liabilities to a trustee.

 

Liquidation of a company happens when the firm cannot pay its debts and finds no other option but to liquidate the assets for paying the creditors.

 

Familiarisation:

Bankruptcy and liquidation thus have the principle purpose of the repayment of maximum debt and then writing it off as per the prevailing contingencies. Insolvency in itself is a catching-up process; it has huge relevance from both legal and financial standpoints. Any person who intends to declare bankruptcy or enter liquidation, or even anyone generally dealing with an insolvent entity, may consult a licensed insolvency practitioner or any qualified professional.