In this article, the term corporate bankruptcy and its relevancy will be discussed. If you own a business or have a personal loan, then this article might be relevant to you. Read on to learn more.
Definition General bankruptcy is a legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor. All of the debtor's assets are measured and evaluated, where the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy. Bankruptcy and the United Kingdom Bankruptcy in the United Kingdom relates only to individuals and partnerships. Companies and other businesses enter into differently-named legal insolvency procedures such as liquidation and administration. However, the term 'bankruptcy" is often used when referring to companies in the media and in general conversation. In Scotland, bankruptcy is referred to as sequestration. To apply for your own bankruptcy in Scotland, you must have more than £1500 of debt. Insolvency Act 1986 A trustee in bankruptcy must be either a civil servant or a licensed insolvency practitioner. The current law in England and Wales derives from the Insolvency Act 1986. Following the introduction of the Enterprise Act 2002, a UK bankruptcy will normally last no longer than 12 months if the official receiver files in court a certificate that his investigations are complete. It was expected that the UK Government's liberalisation of the UK bankruptcy regime would increase the number of bankruptcy cases - the Insolvency Service statistics appear to bear this out.
If you want more information on bankruptcy, you can always seek advice and guidelines on the internet. The internet offers many resources at your disposal. Whether you are having financial trouble within a small or large corporation, there are many online bankruptcy sites to offer you advice. There are many strategies that you can apply to avoid bankruptcy from affecting you and your business. Take the necessary caution and don't overspend your assets and credit. You should be okay. You can never be too careful. Again, for further information on how you can avoid bankruptcy, simply research online.