The English Bankruptcy Act
The Insolvency Act of 1986, otherwise known as the Bankruptcy Act relates largely to companies and individuals who are declared, or declare themselves, insolvent via a court procedure. Various chapters are covered by the act, concerning such individuals or companies.
Other People Are Reading
-
Company Insolvency
-
Under Chapter II of the Insolvency Act a company can declare voluntary insolvency and dissolve the company if limited or no funds are available for the continued operational costs of running the company. If debts outweigh assets, the company proprietors can declare Chapter II voluntary bankruptcy.
Liquidators
-
Liquidators are assigned to the company to liquidate and actualize any company assets to pay creditors for the completion of the dissolution process. Creditors are paid in order of application and priority. If any monies are left over after liquidation they may be returned to the proprietor.
-
Individual Bankruptcy
-
An individual can declare insolvency by way of a court declaration. A personal administrator or trustee will be appointed to assist with the debt recovery and selling off of personal assets to compensate creditors for the debt. Bankruptcy orders can also be obtained by an individual or company to another individual who has debts owed. The individual's estate is then scrutinized by the administrator who must also demonstrate due protection of the estate and the way it is managed.
-
