Winding Up & Insolvency
Winding Up & Insolvency
Insolvency is the term which describes the inability of a person or corporation to pay their debts when they fall due. An individual may declare bankruptcy when insolvent and a company may go into liquidation and will be wound up.
Winding up of a company is the stage, where by the company takes its last breath. It is a process by which business of the company is wound up, and the company ceases to exist anymore. All the assets of the company are sold, and the proceedings collected are used to discharge the liabilities on a priority basis.
A solvent company can be liquidated, or wound up, by resolution of its shareholders if the company is able to pay its debts. However, if the company is not able to pay its debts, then the winding up process can be a long and complex one.
One of the biggest problems in any insolvency or bankruptcy matter is making sure you have enough time to save you, your company or business. If you have debt that needs to be paid and have been issued with a bankruptcy notice or statutory demand, or are in the process of winding up a company，then you need to obtain advice as soon as possible – come talk to us at Prudentia Legal, where our experienced lawyer will act expeditiously to protect your interests.
