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The main difference is laid in the cause of each situations. In bankruptcy, the major reason is that the company is unable to pay its debt at maturity so that the creditors petition for bankruptcy in order to recoup their debt. In liquidation or wind-up, it means that the company was brought to termination. The are many grounds for liquidation, such as the company unable to pay its debt (compulsory liquidation) or its member agree to terminate its activities ( voluntary liquidation).
Please Note:
There is also a difference between "Winding-up" and "Liquidation".
Winding-up:
It is a process / procedure by which assets of the company are realized and liabilities are settled. It may take several months. A liquidator is appointed to do all these activities. In essence, liquidator is the full in-charge of the company's affairs. The company still exists with its legal status as a company, but it cannot conduct its business (except required for beneficial winding-up of affairs).
Liquidation / Dissolution:
When all the assets of the company are completely realized and all liabilities are completely settled, and affair of the company are fully wound up, the company is liquidated. This is the end of the company's life. After liquidation, the company dies; it has no legal existence, no assets, no liabilities, no management, and nothing else. In pure legal terms, this is called "Dissolution".
"Liquidation" is also used, alternatively, when a company becomes unable to pay its debts. Then, it is said that the company is liquidated.
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What is called straight bankruptcy?
Chapter 7, total liquidation
What are synonyms for bankruptcy?
insolvency, failure, disaster, ruin, liquidation
What chapter is bankruptcy known as a straight liquidation?
chapter 7
What kind of lawyer would one use when declaring bankruptcy?
When one is declaring bankruptcy, they should use a lawyer familiar with bankruptcy. There are different types of bankruptcy to consider, such as liquidation or cancelling your debts, or reorganizing for wage earners who can still make debt payments.
What is meant by the term voluntary insolvency?
Voluntary insolvency, also known as voluntary liquidation, is a type o liquidation or bankruptcy that is supported by the members of the Board of the company and is not forced by Chapter 7 bankruptcy.
What are the different types of bankruptcies?
Four. Chapter 7 BK is a total liquidation of debts and available to individuals and businessess. Chapter 13, is a consolidation/repayment action and available to individuals and small businesses. Chapter 11 is a consolidation/repayment action and used by large businesses/corporations. Chapter 12 is a consolidation/repayment action used by farmers and private individuals in the fishing industry (fishermen/women).
What type of bankruptcy requires the liquidation of most of your assets?
Chapter 7
Did charter communications file for bankruptcy?
From what I have read, yes, but not for liquidation only for reorganization.
In what year did Tower Records file for bankruptcy and liquidation?
Tower records filed for bankruptcy and liquidation in 2006 after several years of failed ventures and negative earnings. This ended nearly 40 years of business that started in 1960.
What has the author Manuel D Yngson written?
Manuel D. Yngson has written: 'Benchbook on liquidation proceedings in insolvency' -- subject(s): Liquidation, Bankruptcy
What has the author Wolf Schulz written?
Wolf Schulz has written: 'Die masselose Liquidation der GmbH' -- subject(s): Bankruptcy, Liquidation, Private companies
Is Gamecrazy open on sunday's?
They are not open at all. All of GameCrazy's locations have closed after parent company Movie Gallery's bankruptcy and liquidation.
