Note: You must be registered in order to post a reply. To register, click here. Registration is FREE!
T O P I C R E V I E W
cathydsc
Posted - 01 March 2009 : 16:30:06 Hi guys
can anybody tell me what insolvency means??? is it the same as being bankrupt?? if a business goes into administration how long does it stay in the administrators hands for?? and what happens after this???
many thanks
Cathy
1 L A T E S T R E P L I E S (Newest First)
John
Posted - 01 March 2009 : 16:50:49 Hi Cathy
I take it the Insolvency referred to in your other post is related to a limited company.
If the company is in administration it's so that the directors and the administrator (licensed insolvency practitioner) can decide which is the best way forward and largely prevents further action by a creditor.
The objective usually is to trade on and sell as a going concern or sell off assets to the benefit of creditors.
If neither of these seems viable then a creditors voluntary liquidation would usually ensue.
The IP has 8 weeks to notify creditors of the situation and usually up to a year (although this can be extended in certain circumstances) to complete whichever process is deemed appropriate.
Whilst the company would be deemed insolvent from the outset of the process it would not be considered bankrupt until it had been liquidated.
