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What Is Insolvency and Bankruptcy

Well, the definition of these two terms is similar in India as anywhere else on the planet. To be precise, insolvency is a state where you are not able to pay to your debtors and bankruptcy is a declaration of this state.

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What Is Insolvency and Bankruptcy

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  1. Insolvency & Bankruptcy Presented By: Registrationwala

  2. What is Insolvency Insolvency is a state of being where an entity is not able to repay the debts to its creditors within the prescribed time  The insolvent entity/insolvent debtor can either be a person or a company  If the debtor is a company, then they are referred to as corporate debtors  The operational or financial creditors creditors can either be 

  3. What is Bankruptcy Bankruptcy refers to a declaration of insolvency  It is only after this declaration that the Insolvency and Bankruptcy Board of India steps in  Bankruptcy declaration can either be filed by the debtor or the creditors  When bankruptcy is declared, insolvency resolution process is initiated. 

  4. Insolvency In Business Insolvency in business refers to when a company has gone insolvent.  It is a case when the company is not able to pay operational or financial credit.  When a business goes insolvent, the employees of that business suffer.  Not being able to pay the employees is an example of inability repay operational credit. 

  5. What Happens When A Company Becomes Insolvent After a company becomes insolvent, either they or the operational/financial creditors can file to initiate the insolvency resolution process.  The form used to file this petition comes under section 9.  If the form is accepted, the insolvency resolution process initiates.  At the end of the resolution, either the company is sold or the assets of the power point debtor are liquidated.  https://registrationwala.wordpress.com/2018/12/17/what-is-insolvency-and- bankruptcy/

  6. What Is Personal Insolvency If the insolvent entity is a single person, then it is the case of personal insolvency.  The matter of personal insolvency is handled by Debt Recovery Tribunal.  Personal insolvency does not take much time to be resolved.  Personal insolvency can lead to the need of personal assets to be liquidated.  Personal Insolvency

  7. Contact Us +91-8882-580-580  support@registrationwala.com https://www.registrationwala.com/

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