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href="#Law"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>Law</span> </div> </a> <button aria-controls="toc-Law-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Law subsection</span> </button> <ul id="toc-Law-sublist" class="vector-toc-list"> <li id="toc-Anguilla" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Anguilla"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1</span> <span>Anguilla</span> </div> </a> <ul id="toc-Anguilla-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Australia" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Australia"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.2</span> <span>Australia</span> </div> </a> <ul id="toc-Australia-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-British_Virgin_Islands" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#British_Virgin_Islands"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.3</span> <span>British Virgin Islands</span> </div> </a> <ul id="toc-British_Virgin_Islands-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Canada" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Canada"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.4</span> <span>Canada</span> </div> </a> <ul id="toc-Canada-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Germany" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Germany"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.5</span> <span>Germany</span> </div> </a> <ul id="toc-Germany-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Hong_Kong" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Hong_Kong"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.6</span> <span>Hong Kong</span> </div> </a> <ul id="toc-Hong_Kong-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-India" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#India"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.7</span> <span>India</span> </div> </a> <ul id="toc-India-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Iran" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Iran"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.8</span> <span>Iran</span> </div> </a> <ul id="toc-Iran-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Ireland" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Ireland"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.9</span> <span>Ireland</span> </div> </a> <ul id="toc-Ireland-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Russia" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Russia"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.10</span> <span>Russia</span> </div> </a> <ul id="toc-Russia-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-South_Africa" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#South_Africa"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.11</span> <span>South Africa</span> </div> </a> <ul id="toc-South_Africa-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Switzerland" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Switzerland"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.12</span> <span>Switzerland</span> </div> </a> <ul id="toc-Switzerland-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Turkey" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Turkey"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.13</span> <span>Turkey</span> </div> </a> <ul id="toc-Turkey-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-United_Kingdom" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#United_Kingdom"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.14</span> <span>United Kingdom</span> </div> </a> <ul id="toc-United_Kingdom-sublist" class="vector-toc-list"> <li id="toc-Insolvency_Act_1986" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Insolvency_Act_1986"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.14.1</span> <span>Insolvency Act 1986</span> </div> </a> <ul id="toc-Insolvency_Act_1986-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Procedures" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Procedures"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.14.2</span> <span>Procedures</span> </div> </a> <ul id="toc-Procedures-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Receivership" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Receivership"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.14.3</span> <span>Receivership</span> </div> </a> <ul id="toc-Receivership-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-United_States" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#United_States"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.15</span> <span>United States</span> </div> </a> <ul id="toc-United_States-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Further_reading" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Further_reading"> <div class="vector-toc-text"> <span class="vector-toc-numb">8</span> <span>Further reading</span> </div> </a> <ul id="toc-Further_reading-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-External_links" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#External_links"> <div class="vector-toc-text"> <span class="vector-toc-numb">9</span> <span>External links</span> </div> </a> <ul id="toc-External_links-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-page-titlebar-toc" class="vector-dropdown vector-page-titlebar-toc vector-button-flush-left" > <input type="checkbox" id="vector-page-titlebar-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-titlebar-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-page-titlebar-toc-label" for="vector-page-titlebar-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span class="vector-dropdown-label-text">Toggle the table of contents</span> </label> <div class="vector-dropdown-content"> <div id="vector-page-titlebar-toc-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <h1 id="firstHeading" class="firstHeading mw-first-heading"><span class="mw-page-title-main">Insolvency</span></h1> <div id="p-lang-btn" class="vector-dropdown mw-portlet mw-portlet-lang" > <input type="checkbox" id="p-lang-btn-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-p-lang-btn" class="vector-dropdown-checkbox mw-interlanguage-selector" aria-label="Go to an article in another language. Available in 31 languages" > <label id="p-lang-btn-label" for="p-lang-btn-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive mw-portlet-lang-heading-31" aria-hidden="true" ><span class="vector-icon mw-ui-icon-language-progressive mw-ui-icon-wikimedia-language-progressive"></span> <span class="vector-dropdown-label-text">31 languages</span> </label> <div class="vector-dropdown-content"> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="interlanguage-link interwiki-ar mw-list-item"><a href="https://ar.wikipedia.org/wiki/%D8%A5%D8%B9%D8%B3%D8%A7%D8%B1_(%D9%85%D8%A7%D9%84%D9%8A)" title="إعسار (مالي) – Arabic" lang="ar" hreflang="ar" data-title="إعسار (مالي)" data-language-autonym="العربية" data-language-local-name="Arabic" class="interlanguage-link-target"><span>العربية</span></a></li><li class="interlanguage-link interwiki-be-x-old mw-list-item"><a href="https://be-tarask.wikipedia.org/wiki/%D0%9D%D0%B5%D0%BF%D0%BB%D0%B0%D1%82%D0%B0%D0%B7%D0%B4%D0%BE%D0%BB%D1%8C%D0%BD%D0%B0%D1%81%D1%8C%D1%86%D1%8C" title="Неплатаздольнасьць – Belarusian (Taraškievica orthography)" lang="be-tarask" hreflang="be-tarask" data-title="Неплатаздольнасьць" data-language-autonym="Беларуская (тарашкевіца)" data-language-local-name="Belarusian (Taraškievica orthography)" class="interlanguage-link-target"><span>Беларуская (тарашкевіца)</span></a></li><li class="interlanguage-link interwiki-bg mw-list-item"><a href="https://bg.wikipedia.org/wiki/%D0%9D%D0%B5%D1%81%D1%8A%D1%81%D1%82%D0%BE%D1%8F%D1%82%D0%B5%D0%BB%D0%BD%D0%BE%D1%81%D1%82" title="Несъстоятелност – Bulgarian" lang="bg" hreflang="bg" data-title="Несъстоятелност" data-language-autonym="Български" data-language-local-name="Bulgarian" class="interlanguage-link-target"><span>Български</span></a></li><li class="interlanguage-link interwiki-cs mw-list-item"><a href="https://cs.wikipedia.org/wiki/Platebn%C3%AD_neschopnost" title="Platební neschopnost – Czech" lang="cs" hreflang="cs" data-title="Platební neschopnost" data-language-autonym="Čeština" data-language-local-name="Czech" class="interlanguage-link-target"><span>Čeština</span></a></li><li class="interlanguage-link interwiki-da mw-list-item"><a href="https://da.wikipedia.org/wiki/Insolvens" title="Insolvens – Danish" lang="da" hreflang="da" data-title="Insolvens" data-language-autonym="Dansk" data-language-local-name="Danish" class="interlanguage-link-target"><span>Dansk</span></a></li><li class="interlanguage-link interwiki-de mw-list-item"><a href="https://de.wikipedia.org/wiki/Insolvenz" title="Insolvenz – German" lang="de" hreflang="de" data-title="Insolvenz" data-language-autonym="Deutsch" data-language-local-name="German" class="interlanguage-link-target"><span>Deutsch</span></a></li><li class="interlanguage-link interwiki-el mw-list-item"><a href="https://el.wikipedia.org/wiki/%CE%A0%CF%84%CF%89%CF%87%CE%B5%CF%85%CF%84%CE%B9%CE%BA%CF%8C_%CE%94%CE%AF%CE%BA%CE%B1%CE%B9%CE%BF" title="Πτωχευτικό Δίκαιο – Greek" lang="el" hreflang="el" data-title="Πτωχευτικό Δίκαιο" data-language-autonym="Ελληνικά" data-language-local-name="Greek" class="interlanguage-link-target"><span>Ελληνικά</span></a></li><li class="interlanguage-link interwiki-es mw-list-item"><a href="https://es.wikipedia.org/wiki/Insolvencia" title="Insolvencia – Spanish" lang="es" hreflang="es" data-title="Insolvencia" data-language-autonym="Español" data-language-local-name="Spanish" class="interlanguage-link-target"><span>Español</span></a></li><li class="interlanguage-link interwiki-eo mw-list-item"><a href="https://eo.wikipedia.org/wiki/Nesolventeco" title="Nesolventeco – Esperanto" lang="eo" hreflang="eo" data-title="Nesolventeco" data-language-autonym="Esperanto" data-language-local-name="Esperanto" class="interlanguage-link-target"><span>Esperanto</span></a></li><li class="interlanguage-link interwiki-eu mw-list-item"><a href="https://eu.wikipedia.org/wiki/Kaudimengabezia" title="Kaudimengabezia – Basque" lang="eu" hreflang="eu" data-title="Kaudimengabezia" data-language-autonym="Euskara" data-language-local-name="Basque" class="interlanguage-link-target"><span>Euskara</span></a></li><li class="interlanguage-link interwiki-fa mw-list-item"><a href="https://fa.wikipedia.org/wiki/%D8%A7%D8%B9%D8%B3%D8%A7%D8%B1" title="اعسار – Persian" lang="fa" hreflang="fa" data-title="اعسار" data-language-autonym="فارسی" data-language-local-name="Persian" class="interlanguage-link-target"><span>فارسی</span></a></li><li class="interlanguage-link interwiki-fr mw-list-item"><a href="https://fr.wikipedia.org/wiki/D%C3%A9confiture" title="Déconfiture – French" lang="fr" hreflang="fr" data-title="Déconfiture" data-language-autonym="Français" data-language-local-name="French" class="interlanguage-link-target"><span>Français</span></a></li><li class="interlanguage-link interwiki-ko mw-list-item"><a href="https://ko.wikipedia.org/wiki/%EC%A7%80%EA%B8%89%EB%B6%88%EB%8A%A5" title="지급불능 – Korean" lang="ko" hreflang="ko" data-title="지급불능" data-language-autonym="한국어" data-language-local-name="Korean" class="interlanguage-link-target"><span>한국어</span></a></li><li class="interlanguage-link interwiki-id mw-list-item"><a href="https://id.wikipedia.org/wiki/Insolvensi" title="Insolvensi – Indonesian" lang="id" hreflang="id" data-title="Insolvensi" data-language-autonym="Bahasa Indonesia" data-language-local-name="Indonesian" class="interlanguage-link-target"><span>Bahasa Indonesia</span></a></li><li class="interlanguage-link interwiki-it mw-list-item"><a href="https://it.wikipedia.org/wiki/Insolvenza" title="Insolvenza – Italian" lang="it" hreflang="it" data-title="Insolvenza" data-language-autonym="Italiano" data-language-local-name="Italian" class="interlanguage-link-target"><span>Italiano</span></a></li><li class="interlanguage-link interwiki-he mw-list-item"><a href="https://he.wikipedia.org/wiki/%D7%93%D7%99%D7%A0%D7%99_%D7%97%D7%93%D7%9C%D7%95%D7%AA_%D7%A4%D7%99%D7%A8%D7%A2%D7%95%D7%9F" title="דיני חדלות פירעון – Hebrew" lang="he" hreflang="he" data-title="דיני חדלות פירעון" data-language-autonym="עברית" data-language-local-name="Hebrew" class="interlanguage-link-target"><span>עברית</span></a></li><li class="interlanguage-link interwiki-kk mw-list-item"><a href="https://kk.wikipedia.org/wiki/%D0%A2%D3%A9%D0%BB%D0%B5%D0%BC_%D0%BA%D0%B0%D0%B1%D1%96%D0%BB%D0%B5%D1%82%D1%81%D1%96%D0%B7%D0%B4%D1%96%D0%B3%D1%96" title="Төлем кабілетсіздігі – Kazakh" lang="kk" hreflang="kk" data-title="Төлем кабілетсіздігі" data-language-autonym="Қазақша" data-language-local-name="Kazakh" class="interlanguage-link-target"><span>Қазақша</span></a></li><li class="interlanguage-link interwiki-lt mw-list-item"><a href="https://lt.wikipedia.org/wiki/Nemokumo_teis%C4%97" title="Nemokumo teisė – Lithuanian" lang="lt" hreflang="lt" data-title="Nemokumo teisė" data-language-autonym="Lietuvių" data-language-local-name="Lithuanian" class="interlanguage-link-target"><span>Lietuvių</span></a></li><li class="interlanguage-link interwiki-hu mw-list-item"><a href="https://hu.wikipedia.org/wiki/Fizet%C3%A9sk%C3%A9ptelens%C3%A9g" title="Fizetésképtelenség – Hungarian" lang="hu" hreflang="hu" data-title="Fizetésképtelenség" data-language-autonym="Magyar" data-language-local-name="Hungarian" class="interlanguage-link-target"><span>Magyar</span></a></li><li class="interlanguage-link interwiki-nl mw-list-item"><a href="https://nl.wikipedia.org/wiki/Insolventie" title="Insolventie – Dutch" lang="nl" hreflang="nl" data-title="Insolventie" data-language-autonym="Nederlands" data-language-local-name="Dutch" class="interlanguage-link-target"><span>Nederlands</span></a></li><li class="interlanguage-link interwiki-ja mw-list-item"><a href="https://ja.wikipedia.org/wiki/%E5%82%B5%E5%8B%99%E8%B6%85%E9%81%8E" title="債務超過 – Japanese" lang="ja" hreflang="ja" data-title="債務超過" data-language-autonym="日本語" data-language-local-name="Japanese" class="interlanguage-link-target"><span>日本語</span></a></li><li class="interlanguage-link interwiki-no mw-list-item"><a href="https://no.wikipedia.org/wiki/Insolvens" title="Insolvens – Norwegian Bokmål" lang="nb" hreflang="nb" data-title="Insolvens" data-language-autonym="Norsk bokmål" data-language-local-name="Norwegian Bokmål" class="interlanguage-link-target"><span>Norsk bokmål</span></a></li><li class="interlanguage-link interwiki-nn mw-list-item"><a href="https://nn.wikipedia.org/wiki/Insolvens" title="Insolvens – Norwegian Nynorsk" lang="nn" hreflang="nn" data-title="Insolvens" data-language-autonym="Norsk nynorsk" data-language-local-name="Norwegian Nynorsk" class="interlanguage-link-target"><span>Norsk nynorsk</span></a></li><li class="interlanguage-link interwiki-pl mw-list-item"><a href="https://pl.wikipedia.org/wiki/Niewyp%C5%82acalno%C5%9B%C4%87" title="Niewypłacalność – Polish" lang="pl" hreflang="pl" data-title="Niewypłacalność" data-language-autonym="Polski" data-language-local-name="Polish" class="interlanguage-link-target"><span>Polski</span></a></li><li class="interlanguage-link interwiki-pt mw-list-item"><a href="https://pt.wikipedia.org/wiki/Insolv%C3%AAncia" title="Insolvência – Portuguese" lang="pt" hreflang="pt" data-title="Insolvência" data-language-autonym="Português" data-language-local-name="Portuguese" class="interlanguage-link-target"><span>Português</span></a></li><li class="interlanguage-link interwiki-ro mw-list-item"><a href="https://ro.wikipedia.org/wiki/Insolven%C8%9B%C4%83" title="Insolvență – Romanian" lang="ro" hreflang="ro" data-title="Insolvență" data-language-autonym="Română" data-language-local-name="Romanian" class="interlanguage-link-target"><span>Română</span></a></li><li class="interlanguage-link interwiki-ru mw-list-item"><a href="https://ru.wikipedia.org/wiki/%D0%9D%D0%B5%D0%BF%D0%BB%D0%B0%D1%82%D1%91%D0%B6%D0%B5%D1%81%D0%BF%D0%BE%D1%81%D0%BE%D0%B1%D0%BD%D0%BE%D1%81%D1%82%D1%8C" title="Неплатёжеспособность – Russian" lang="ru" hreflang="ru" data-title="Неплатёжеспособность" data-language-autonym="Русский" data-language-local-name="Russian" class="interlanguage-link-target"><span>Русский</span></a></li><li class="interlanguage-link interwiki-simple mw-list-item"><a href="https://simple.wikipedia.org/wiki/Insolvency" title="Insolvency – Simple English" lang="en-simple" hreflang="en-simple" data-title="Insolvency" data-language-autonym="Simple English" data-language-local-name="Simple English" class="interlanguage-link-target"><span>Simple English</span></a></li><li class="interlanguage-link interwiki-sv mw-list-item"><a href="https://sv.wikipedia.org/wiki/Insolvens" title="Insolvens – Swedish" lang="sv" hreflang="sv" data-title="Insolvens" data-language-autonym="Svenska" data-language-local-name="Swedish" class="interlanguage-link-target"><span>Svenska</span></a></li><li class="interlanguage-link interwiki-uk mw-list-item"><a href="https://uk.wikipedia.org/wiki/%D0%9D%D0%B5%D0%BF%D0%BB%D0%B0%D1%82%D0%BE%D1%81%D0%BF%D1%80%D0%BE%D0%BC%D0%BE%D0%B6%D0%BD%D1%96%D1%81%D1%82%D1%8C" title="Неплатоспроможність – Ukrainian" lang="uk" hreflang="uk" data-title="Неплатоспроможність" data-language-autonym="Українська" data-language-local-name="Ukrainian" class="interlanguage-link-target"><span>Українська</span></a></li><li class="interlanguage-link interwiki-zh mw-list-item"><a href="https://zh.wikipedia.org/wiki/%E6%97%A0%E5%8A%9B%E5%81%BF%E4%BB%98" title="无力偿付 – Chinese" lang="zh" hreflang="zh" data-title="无力偿付" data-language-autonym="中文" data-language-local-name="Chinese" class="interlanguage-link-target"><span>中文</span></a></li> </ul> <div class="after-portlet after-portlet-lang"><span class="wb-langlinks-edit wb-langlinks-link"><a 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a{color:var(--color-progressive)!important}}@media print{body.ns-0 .mw-parser-output .sidebar{display:none!important}}</style><style data-mw-deduplicate="TemplateStyles:r1202158006">.mw-parser-output .law-sidebar .sidebar-heading{background:#aaddff;color:#000}.mw-parser-output .law-sidebar .sidebar-above{font-weight:normal}.mw-parser-output .law-sidebar .sidebar-below{padding:0.4em;border-top:1px #aaa solid;font-weight:normal;font-size:smaller}</style><table class="sidebar nomobile nowraplinks hlist law-sidebar"><tbody><tr><th class="sidebar-title"><a class="mw-selflink selflink">Insolvency</a></th></tr><tr><td class="sidebar-image"><figure class="mw-halign-center" typeof="mw:File"><a href="/wiki/File:Peter_Paul_Rubens_(1577-1640)_(style_of)_-_A_Hand_Holding_an_Empty_Purse,_The_Emblem_of,_%E2%80%98No_suffering_can_compare%27_(with_that_of_the_bankrupt_spendthrift)_-_1298194_-_National_Trust.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/a/a4/Peter_Paul_Rubens_%281577-1640%29_%28style_of%29_-_A_Hand_Holding_an_Empty_Purse%2C_The_Emblem_of%2C_%E2%80%98No_suffering_can_compare%27_%28with_that_of_the_bankrupt_spendthrift%29_-_1298194_-_National_Trust.jpg/100px-thumbnail.jpg" decoding="async" width="100" height="131" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/a/a4/Peter_Paul_Rubens_%281577-1640%29_%28style_of%29_-_A_Hand_Holding_an_Empty_Purse%2C_The_Emblem_of%2C_%E2%80%98No_suffering_can_compare%27_%28with_that_of_the_bankrupt_spendthrift%29_-_1298194_-_National_Trust.jpg/150px-thumbnail.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/a/a4/Peter_Paul_Rubens_%281577-1640%29_%28style_of%29_-_A_Hand_Holding_an_Empty_Purse%2C_The_Emblem_of%2C_%E2%80%98No_suffering_can_compare%27_%28with_that_of_the_bankrupt_spendthrift%29_-_1298194_-_National_Trust.jpg/200px-thumbnail.jpg 2x" data-file-width="915" data-file-height="1200" /></a><figcaption></figcaption></figure></td></tr><tr><th class="sidebar-heading"> Processes</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Administration_(law)" title="Administration (law)">Administration</a></li> <li><a href="/wiki/Bankruptcy" title="Bankruptcy">Bankruptcy</a></li> <li><a href="/wiki/Chapter_7,_Title_11,_United_States_Code" title="Chapter 7, Title 11, United States Code">Chapter 7 (US)</a></li> <li><a href="/wiki/Company_voluntary_arrangement" title="Company voluntary arrangement">CVA</a></li> <li><a href="/wiki/Conservatorship" title="Conservatorship">Conservatorship</a></li> <li><a href="/wiki/Dissolution_(law)" title="Dissolution (law)">Dissolution</a></li> <li><a href="/wiki/Examinership" title="Examinership">Examinership</a></li> <li><a href="/wiki/Individual_voluntary_arrangement" title="Individual voluntary arrangement">IVA</a></li> <li><a href="/wiki/Liquidation" title="Liquidation">Liquidation</a></li> <li><a href="/wiki/Provisional_liquidation" title="Provisional liquidation">Provisional liquidation</a></li> <li><a href="/wiki/Receivership" title="Receivership">Receivership</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Officials</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Insolvency_practitioner" title="Insolvency practitioner">Insolvency practitioner</a></li> <li><a href="/wiki/Tribunal" title="Tribunal">Tribunal</a></li> <li><a href="/wiki/Regulatory_agency" title="Regulatory agency">Regulatory agency</a></li> <li><a href="/wiki/Liquidator_(law)" title="Liquidator (law)">Liquidator</a></li> <li><a href="/wiki/Referee_in_Bankruptcy" title="Referee in Bankruptcy">Referee in Bankruptcy</a></li> <li><a href="/wiki/Trustee_in_bankruptcy" title="Trustee in bankruptcy">Trustee in bankruptcy</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Claimants</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Creditor" title="Creditor">Creditor</a></li> <li><a href="/wiki/Preferential_creditor" title="Preferential creditor">Preferential creditor</a></li> <li><a href="/wiki/Secured_creditor" title="Secured creditor">Secured creditor</a></li> <li><a href="/wiki/Unsecured_creditor" title="Unsecured creditor">Unsecured creditor</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Restructuring</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Administration_in_United_Kingdom_law" title="Administration in United Kingdom law">Administration (UK)</a></li> <li><a href="/wiki/Chapter_11,_Title_11,_United_States_Code" title="Chapter 11, Title 11, United States Code">Chapter 11 (US)</a></li> <li><a href="/wiki/Cram_down" title="Cram down">Cram down</a></li> <li><a href="/wiki/Restructuring" title="Restructuring">Restructuring</a></li> <li><a href="/wiki/Scheme_of_arrangement" title="Scheme of arrangement">Scheme of arrangement</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Avoidance regimes</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Fraudulent_conveyance" title="Fraudulent conveyance">Fraudulent conveyance</a></li> <li><a href="/wiki/Undervalue_transaction" title="Undervalue transaction">Undervalue transaction</a></li> <li><a href="/wiki/Unfair_preference" title="Unfair preference">Unfair preference</a></li> <li><a href="/wiki/Voidable_floating_charge" title="Voidable floating charge">Voidable floating charge</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Offences</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Fraudulent_trading" title="Fraudulent trading">Fraudulent trading</a></li> <li><a href="/wiki/Misfeasance" title="Misfeasance">Misfeasance</a></li> <li><a href="/wiki/Trading_while_insolvent" title="Trading while insolvent">Trading while insolvent</a></li> <li><a href="/wiki/Wrongful_trading" title="Wrongful trading">Wrongful trading</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Security</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Floating_charge" title="Floating charge">Floating charge</a></li> <li><a href="/wiki/Lien" title="Lien">Lien</a></li> <li><a href="/wiki/Mortgage" title="Mortgage">Mortgage</a></li> <li><a href="/wiki/Second_lien_loan" title="Second lien loan">Second lien loan</a></li> <li><a href="/wiki/Security_interest" title="Security interest">Security interest</a></li></ul></td> </tr><tr><th class="sidebar-heading"> International</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Chapter_15,_Title_11,_United_States_Code" title="Chapter 15, Title 11, United States Code">Chapter 15 (US)</a></li> <li><a href="/wiki/Cross-border_insolvency" title="Cross-border insolvency">Cross-border insolvency</a></li> <li><a href="/wiki/Insolvency_Regulation" title="Insolvency Regulation">Insolvency Regulation</a></li> <li><a href="/wiki/UNCITRAL_Model_Law_on_Cross-Border_Insolvency" title="UNCITRAL Model Law on Cross-Border Insolvency">UNCITRAL Model Law</a></li></ul></td> </tr><tr><th class="sidebar-heading"> By country</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Anguillan_bankruptcy_law" title="Anguillan bankruptcy law">Anguilla</a></li> <li><a href="/wiki/Australian_insolvency_law" title="Australian insolvency law">Australia</a></li> <li><a href="/wiki/British_Virgin_Islands_bankruptcy_law" title="British Virgin Islands bankruptcy law">BVI</a></li> <li><a href="/wiki/Insolvency_law_of_Canada" title="Insolvency law of Canada">Canada</a></li> <li><a href="/wiki/Cayman_Islands_bankruptcy_law" title="Cayman Islands bankruptcy law">Cayman</a></li> <li><a href="/wiki/Bankruptcy_in_China" title="Bankruptcy in China">China</a></li> <li><a href="/wiki/Hong_Kong_insolvency_law" title="Hong Kong insolvency law">Hong Kong</a></li> <li><a href="/wiki/Insolvency_and_Bankruptcy_Code" class="mw-redirect" title="Insolvency and Bankruptcy Code">India</a></li> <li><a href="/wiki/Bankruptcy_Law_in_the_Republic_of_Ireland" title="Bankruptcy Law in the Republic of Ireland">Ireland</a></li> <li><a href="/wiki/Insolvency_law_of_Russia" title="Insolvency law of Russia">Russia</a></li> <li><a href="/wiki/South_African_insolvency_law" title="South African insolvency law">South Africa</a></li> <li><a href="/wiki/Insolvency_law_of_Switzerland" title="Insolvency law of Switzerland">Switzerland</a></li> <li><a href="/wiki/United_Kingdom_insolvency_law" title="United Kingdom insolvency law">United Kingdom</a></li> <li><a href="/wiki/Bankruptcy_in_the_United_States" title="Bankruptcy in the United States">United States</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Other</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Anti-deprivation_rule" title="Anti-deprivation rule">Anti-deprivation rule</a></li> <li><a href="/wiki/Bankruptcy_alternatives" title="Bankruptcy alternatives">Bankruptcy alternatives</a></li> <li><a href="/wiki/Creditors%27_rights" class="mw-redirect" title="Creditors' rights">Creditors' rights</a></li> <li><a href="/wiki/Chapter_9,_Title_11,_United_States_Code" title="Chapter 9, Title 11, United States Code">Chapter 9 (US)</a></li> <li><a href="/wiki/Debtor" title="Debtor">Debtor</a></li> <li><a href="/wiki/Default_(finance)" title="Default (finance)">Default</a></li> <li><a href="/wiki/Financial_distress" title="Financial distress">Financial distress</a></li> <li><a href="/wiki/History_of_bankruptcy_law" title="History of bankruptcy law">History of bankruptcy law</a></li> <li><a href="/wiki/List_of_bankrupts" title="List of bankrupts">List of bankrupts</a></li> <li><i><a href="/wiki/Pari_passu" title="Pari passu">Pari passu</a></i></li> <li><a href="/wiki/Pre-packaged_insolvency" title="Pre-packaged insolvency">Pre-packaged insolvency</a></li> <li><a href="/wiki/Sovereign_default" title="Sovereign default">Sovereign default</a></li> <li><a href="/wiki/Subordination_(finance)" title="Subordination (finance)">Subordination</a></li></ul></td> </tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 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href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><table class="sidebar sidebar-collapse nomobile nowraplinks accounting"><tbody><tr><td class="sidebar-pretitle">Part of <a href="/wiki/Category:Accounting" title="Category:Accounting">a series</a> on</td></tr><tr><th class="sidebar-title-with-pretitle"><a href="/wiki/Accounting" title="Accounting">Accounting</a></th></tr><tr><td class="sidebar-image"><span class="notpageimage" typeof="mw:File"><a href="/wiki/File:Ledger.png" class="mw-file-description" title="Early 19th-century German ledger"><img alt="Early 19th-century German ledger" src="//upload.wikimedia.org/wikipedia/commons/thumb/e/e6/Ledger.png/200px-Ledger.png" decoding="async" width="200" height="105" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/e/e6/Ledger.png/300px-Ledger.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/e/e6/Ledger.png/400px-Ledger.png 2x" data-file-width="1706" data-file-height="896" /></a></span></td></tr><tr><td class="sidebar-above"> <div class="hlist"><ul><li><a href="/wiki/Historical_cost" title="Historical cost">Historical cost</a></li><li><a href="/wiki/Constant_purchasing_power_accounting" title="Constant purchasing power accounting">Constant purchasing power</a></li><li><a href="/wiki/Management_accounting" title="Management accounting">Management</a></li><li><a href="/wiki/Tax_accounting_in_the_United_States" title="Tax accounting in the United States">Tax</a></li></ul></div></td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed noborder"><div class="sidebar-list-title" style="color: var(--color-base)">Major types</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Audit" title="Audit">Audit</a></li><li><a href="/wiki/Budget" title="Budget">Budget</a></li><li><a href="/wiki/Cost_accounting" title="Cost accounting">Cost</a></li><li><a href="/wiki/Forensic_accounting" title="Forensic accounting">Forensic</a></li><li><a href="/wiki/Financial_accounting" title="Financial accounting">Financial</a></li><li><a href="/wiki/Fund_accounting" title="Fund accounting">Fund</a></li><li><a href="/wiki/Governmental_accounting" title="Governmental accounting">Governmental</a></li><li><a href="/wiki/Management_accounting" title="Management accounting">Management</a></li><li><a href="/wiki/Social_accounting" title="Social accounting">Social</a></li><li><a href="/wiki/Tax_accounting" class="mw-redirect" title="Tax accounting">Tax</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">Key concepts</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Accounting_period" title="Accounting period">Accounting period</a></li><li><a href="/wiki/Accrual" title="Accrual">Accrual</a></li><li><a href="/wiki/Constant_purchasing_power_accounting" title="Constant purchasing power accounting">Constant purchasing power</a></li><li><a href="/wiki/Economic_entity" title="Economic entity">Economic entity</a></li><li><a href="/wiki/Fair_value" title="Fair value">Fair value</a></li><li><a href="/wiki/Going_concern" title="Going concern">Going concern</a></li><li><a href="/wiki/Historical_cost" title="Historical cost">Historical cost</a></li><li><a href="/wiki/Matching_principle" title="Matching principle">Matching principle</a></li><li><a href="/wiki/Materiality_(auditing)" title="Materiality (auditing)">Materiality</a></li><li><a href="/wiki/Revenue_recognition" title="Revenue recognition">Revenue recognition</a></li><li><a href="/wiki/Unit_of_account" title="Unit of account">Unit of account</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">Selected accounts</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Asset" title="Asset">Assets</a></li><li><a href="/wiki/Cash" title="Cash">Cash</a></li><li><a href="/wiki/Cost_of_goods_sold" title="Cost of goods sold">Cost of goods sold</a></li><li><a href="/wiki/Depreciation" title="Depreciation">Depreciation</a> / <a href="/wiki/Amortization_(business)" class="mw-redirect" title="Amortization (business)">Amortization (business)</a></li><li><a href="/wiki/Equity_(finance)" title="Equity (finance)">Equity</a></li><li><a href="/wiki/Expense" title="Expense">Expenses</a></li><li><a href="/wiki/Goodwill_(accounting)" title="Goodwill (accounting)">Goodwill</a></li><li><a href="/wiki/Liability_(financial_accounting)" title="Liability (financial accounting)">Liabilities</a></li><li><a href="/wiki/Profit_(accounting)" title="Profit (accounting)">Profit</a></li><li><a href="/wiki/Revenue" title="Revenue">Revenue</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)"><a href="/wiki/Accounting_standard" title="Accounting standard">Accounting standards</a></div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Generally_accepted_accounting_principles" class="mw-redirect" title="Generally accepted accounting principles">Generally-accepted principles</a></li><li><a href="/wiki/Generally_accepted_auditing_standards" class="mw-redirect" title="Generally accepted auditing standards">Generally-accepted auditing standards</a></li><li><a href="/wiki/Convergence_of_accounting_standards" title="Convergence of accounting standards">Convergence</a></li><li><a href="/wiki/International_Financial_Reporting_Standards" title="International Financial Reporting Standards">International Financial Reporting Standards</a></li><li><a href="/wiki/International_Standards_on_Auditing" title="International Standards on Auditing">International Standards on Auditing</a></li><li><a href="/wiki/Management_Accounting_Principles" class="mw-redirect" title="Management Accounting Principles">Management Accounting Principles</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)"><a href="/wiki/Financial_statement" title="Financial statement">Financial statements</a></div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Annual_report" title="Annual report">Annual report</a></li><li><a href="/wiki/Balance_sheet" title="Balance sheet">Balance sheet</a></li><li><a href="/wiki/Cash_flow_statement" title="Cash flow statement">Cash-flow</a></li><li><a href="/wiki/Statement_of_changes_in_equity" title="Statement of changes in equity">Equity</a></li><li><a href="/wiki/Income_statement" title="Income statement">Income</a></li><li><a href="/wiki/Management_discussion_and_analysis" class="mw-redirect" title="Management discussion and analysis">Management discussion</a></li><li><a href="/wiki/Notes_to_the_financial_statements" class="mw-redirect" title="Notes to the financial statements">Notes to the financial statements</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)"><a href="/wiki/Bookkeeping" title="Bookkeeping">Bookkeeping</a></div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Bank_reconciliation" title="Bank reconciliation">Bank reconciliation</a></li><li><a href="/wiki/Debits_and_credits" title="Debits and credits">Debits and credits</a></li><li><a href="/wiki/Double-entry_bookkeeping_system" class="mw-redirect" title="Double-entry bookkeeping system">Double-entry system</a></li><li><a href="/wiki/FIFO_and_LIFO_accounting" title="FIFO and LIFO accounting">FIFO and LIFO</a></li><li><a href="/wiki/General_journal" title="General journal">Journal</a></li><li><a href="/wiki/Ledger" title="Ledger">Ledger</a> / <a href="/wiki/General_ledger" title="General ledger">General ledger</a></li><li><a href="/wiki/Trial_balance" title="Trial balance">Trial balance</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)"><a href="/wiki/Audit" title="Audit">Auditing</a></div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Financial_audit" title="Financial audit">Financial</a></li><li><a href="/wiki/Internal_audit" title="Internal audit">Internal</a></li><li><a href="/wiki/Accounting_networks_and_associations" class="mw-redirect" title="Accounting networks and associations">Firms</a></li><li><a href="/wiki/Auditor%27s_report" title="Auditor's report">Report</a></li><li><a href="/wiki/Sarbanes%E2%80%93Oxley_Act" title="Sarbanes–Oxley Act">Sarbanes–Oxley Act</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">People and organizations</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Accountant" title="Accountant">Accountants</a></li><li><a href="/wiki/Category:Accounting_organizations" title="Category:Accounting organizations">Accounting organizations</a></li><li><a href="/wiki/Luca_Pacioli" title="Luca Pacioli">Luca Pacioli</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">Development</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/History_of_accounting" title="History of accounting">History</a></li><li><a href="/wiki/Accounting_research" title="Accounting research">Research</a></li><li><a href="/wiki/Positive_accounting" title="Positive accounting">Positive accounting</a></li><li><a href="/wiki/Sarbanes%E2%80%93Oxley_Act" title="Sarbanes–Oxley Act">Sarbanes–Oxley Act</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">Misconduct</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Creative_accounting" title="Creative accounting">Creative</a></li><li><a href="/wiki/Earnings_management" title="Earnings management">Earnings management</a></li><li><a href="/wiki/Error_account" title="Error account">Error account</a></li><li><a href="/wiki/Hollywood_accounting" title="Hollywood accounting">Hollywood</a></li><li><a href="/wiki/Off-balance-sheet" title="Off-balance-sheet">Off-balance-sheet</a></li><li><a href="/wiki/Two_sets_of_books" title="Two sets of books">Two sets of books</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Accounting" title="Template:Accounting"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Accounting" title="Template talk:Accounting"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Accounting" title="Special:EditPage/Template:Accounting"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p>In <a href="/wiki/Accounting" title="Accounting">accounting</a>, <b>insolvency</b> is the state of being unable to pay the <a href="/wiki/Debt" title="Debt">debts</a>, by a <a href="/wiki/Natural_person" title="Natural person">person</a> or <a href="/wiki/Company" title="Company">company</a> (<a href="/wiki/Debtor" title="Debtor">debtor</a>), at <a href="/wiki/Maturity_(finance)" title="Maturity (finance)">maturity</a>; those in a state of insolvency are said to be <i>insolvent</i>. There are two forms: <a href="/wiki/Cash_flow" title="Cash flow">cash-flow</a> insolvency and <a href="/wiki/Balance_sheet" title="Balance sheet">balance-sheet</a> insolvency. </p><p><b>Cash-flow insolvency</b> is when a person or company has enough <a href="/wiki/Asset" title="Asset">assets</a> to pay what is owed, but does not have the appropriate form of payment. For example, a person may own a large house and a valuable car, but not have enough <a href="/wiki/Market_liquidity" title="Market liquidity">liquid</a> assets to pay a debt when it falls due. Cash-flow insolvency can usually be resolved by <a href="/wiki/Negotiation" title="Negotiation">negotiation</a>. For example, the bill collector may wait until the car is sold and the debtor agrees to pay a penalty. </p><p><b>Balance-sheet insolvency</b> is when a person or company does not have enough assets to pay all of their debts. The person or company might enter <a href="/wiki/Bankruptcy" title="Bankruptcy">bankruptcy</a>, but not necessarily. Once a loss is accepted by all parties, negotiation is often able to resolve the situation without bankruptcy. A company that is balance-sheet insolvent may still have enough cash to pay its next bill on time. However, most laws will not let the company pay that bill unless it will directly help all their creditors. For example, an insolvent farmer may be allowed to hire people to help harvest the crop, because <i>not</i> harvesting and selling the crop would be even <i>worse</i> for his creditors. </p><p>It has been suggested that the speaker or writer should either say <b>technical insolvency</b> or <b>actual insolvency</b> in order to always be clear –  where technical insolvency is a <a href="/wiki/Synonym" title="Synonym">synonym</a> for balance sheet insolvency, which means that <a href="/wiki/Current_ratio" title="Current ratio">its liabilities are greater than its assets</a>, and actual insolvency is a synonym for the first definition of insolvency ("Insolvency is the inability of a debtor to pay their debt.").<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> While technical insolvency is a synonym for balance-sheet insolvency, cash-flow insolvency and actual insolvency are not synonyms. The term "cash-flow insolvent" carries a strong (but perhaps not absolute) connotation that the debtor is balance-sheet solvent, whereas the term "actually insolvent" does not. </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Technical_definitions">Technical definitions</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=1" title="Edit section: Technical definitions"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Cash-flow insolvency involves a lack of <a href="/wiki/Accounting_liquidity" title="Accounting liquidity">liquidity</a> to pay debts as they fall due. </p><p>Balance sheet insolvency involves having negative <a href="/wiki/Net_assets" class="mw-redirect" title="Net assets">net assets</a>—where liabilities exceed assets. Insolvency is not a <a href="/wiki/Synonym" title="Synonym">synonym</a> for <a href="/wiki/Bankruptcy" title="Bankruptcy">bankruptcy</a>, which is a determination of insolvency made by a <a href="/wiki/Court_of_law" class="mw-redirect" title="Court of law">court of law</a> with resulting legal orders intended to resolve the insolvency. </p><p><a href="/wiki/Accounting_liquidity" title="Accounting liquidity">Accounting insolvency</a> happens when total liabilities exceed total assets (negative <a href="/wiki/Net_worth" title="Net worth">net worth</a>).<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Consequences">Consequences</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=2" title="Edit section: Consequences"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The principal focus of modern insolvency <a href="/wiki/Legislation" title="Legislation">legislation</a> and business <a href="/wiki/Debt_restructuring" title="Debt restructuring">debt restructuring</a> practices no longer rests on the <a href="/wiki/Liquidation" title="Liquidation">liquidation</a> and elimination of insolvent entities but on the remodeling of the financial and organizational structure of debtors experiencing <a href="/wiki/Financial_distress" title="Financial distress">financial distress</a> so as to permit the rehabilitation and continuation of their business. This is known as <b>business turnaround</b> or <b>business recovery</b>. Implementing a business turnaround may take many forms, including keep and restructure, sale as a going concern, or wind-down and exit. In some jurisdictions, it is an <a href="/wiki/Offence_(law)" class="mw-redirect" title="Offence (law)">offence</a> under the insolvency laws for a <a href="/wiki/Corporation" title="Corporation">corporation</a> to continue in business while insolvent. In others (like the United States with its <a href="/wiki/Chapter_11" class="mw-redirect" title="Chapter 11">Chapter 11</a> provisions), the business may continue under a declared protective arrangement while alternative options to achieve recovery are worked out. Increasingly, legislatures have favored alternatives to winding up companies for good. </p><p>It can be, in several jurisdictions, grounds for a civil action or even an offence to continue to pay some <a href="/wiki/Creditor" title="Creditor">creditors</a> in preference to other creditors once a state of insolvency is reached.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Debt_restructuring">Debt restructuring</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=3" title="Edit section: Debt restructuring"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Debt restructurings are typically handled by professional insolvency and restructuring practitioners, and are usually less expensive and a preferable alternative to bankruptcy. </p><p><a href="/wiki/Debt_restructuring" title="Debt restructuring">Debt restructuring</a> is a process that allows a private or public company - or a sovereign entity - facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its operations. </p> <div class="mw-heading mw-heading2"><h2 id="Government_debt">Government debt</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=4" title="Edit section: Government debt"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Although the term "bankrupt" may be used referring to a government, sovereign states do not go bankrupt. This is so because bankruptcy is governed by national law; there exists no entity to take over such a government and distribute assets to creditors. Governments <i>can</i> be insolvent in terms of not having money to pay obligations when they are due. If a government does not meet an obligation, it is in "<a href="/wiki/Default_(finance)" title="Default (finance)">default</a>". As governments are <a href="/wiki/Sovereignty" title="Sovereignty">sovereign</a> entities, creditors who hold debt of the government cannot easily seize the assets of the government to re-pay the debt (though "<a href="/wiki/Vulture_funds" class="mw-redirect" title="Vulture funds">Vulture funds</a>" often find ways to do so). The recourse for the creditor is to request to be repaid at least some of what is owed. However, in most cases, debt in default is <a href="/wiki/Refinancing" title="Refinancing">refinanced</a> by further borrowing or <a href="/wiki/Monetization" title="Monetization">monetized</a> by issuing more <a href="/wiki/Currency" title="Currency">currency</a> (which typically results in <a href="/wiki/Inflation" title="Inflation">inflation</a> or <a href="/wiki/Hyperinflation" title="Hyperinflation">hyperinflation</a>).<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (September 2022)">citation needed</span></a></i>]</sup> </p> <div class="mw-heading mw-heading2"><h2 id="Law">Law</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=5" title="Edit section: Law"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Insolvency regimes around the world have evolved in very different ways, with laws focusing on different strategies for dealing with the insolvent. The outcome of an insolvent restructuring can be very different depending on the laws of the state in which the insolvency proceeding is run, and in many cases different <a href="/wiki/Stakeholder_(corporate)" title="Stakeholder (corporate)">stakeholders</a> in a company may hold the advantage in different <a href="/wiki/Jurisdictions" class="mw-redirect" title="Jurisdictions">jurisdictions</a>.<sup id="cite_ref-Practitioner_7-0" class="reference"><a href="#cite_note-Practitioner-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Anguilla">Anguilla</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=6" title="Edit section: Anguilla"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1236090951">.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Anguillan_bankruptcy_law" title="Anguillan bankruptcy law">Anguillan bankruptcy law</a></div> <p>In <a href="/wiki/Anguilla" title="Anguilla">Anguilla</a>, the insolvency of individuals is regulated under the Bankruptcy Act (Cap B.15) and corporate insolvency is governed by the Bankruptcy Act (Cap B.15) or the Companies Act (Cap C.65). </p> <div class="mw-heading mw-heading3"><h3 id="Australia">Australia</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=7" title="Edit section: Australia"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Australian_insolvency_law" title="Australian insolvency law">Australian insolvency law</a></div> <p>In <a href="/wiki/Australia" title="Australia">Australia</a>, corporate insolvency is governed by the <a href="/wiki/Corporations_Act_2001" title="Corporations Act 2001">Corporations Act 2001</a> (Cth). Companies can be put into <a href="/wiki/Voluntary_administration" class="mw-redirect" title="Voluntary administration">Voluntary Administration</a>, Creditors Voluntary Liquidation, and Court Liquidation. Secured creditors with registered charges are able to appoint Receivers and Receivers & Managers depending on their charge. </p> <div class="mw-heading mw-heading3"><h3 id="British_Virgin_Islands">British Virgin Islands</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=8" title="Edit section: British Virgin Islands"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/British_Virgin_Islands_bankruptcy_law" title="British Virgin Islands bankruptcy law">British Virgin Islands bankruptcy law</a></div> <p>In the <a href="/wiki/British_Virgin_Islands" title="British Virgin Islands">British Virgin Islands</a>, insolvency law is primarily codified in the Insolvency Act, 2003 and the Insolvency Rules, 2005. </p> <div class="mw-heading mw-heading3"><h3 id="Canada">Canada</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=9" title="Edit section: Canada"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Insolvency_law_of_Canada" title="Insolvency law of Canada">Insolvency law of Canada</a></div> <p>In <a href="/wiki/Canada" title="Canada">Canada</a>, bankruptcy and insolvency are generally regulated by the <a href="/wiki/Bankruptcy_and_Insolvency_Act" title="Bankruptcy and Insolvency Act">Bankruptcy and Insolvency Act</a>. An alternative regime is available to larger companies (or affiliated groups) under the <a href="/wiki/Companies%27_Creditors_Arrangements_Act" class="mw-redirect" title="Companies' Creditors Arrangements Act">Companies' Creditors Arrangements Act</a>, where total debts exceed $5 million.<sup id="cite_ref-CCCA_8-0" class="reference"><a href="#cite_note-CCCA-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Germany">Germany</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=10" title="Edit section: Germany"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In <a href="/wiki/Germany" title="Germany">Germany</a>, insolvency proceedings, both for companies and for natural persons, are regulated by the Insolvency Act <i>(Insolvenzordnung),</i> in effect since 1999 but with significant changes in 2012.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> The goal of insolvency law is the equal and best satisfaction of creditors. </p><p>If the interests of creditors are respected, insolvent companies are offered different ways to restructure their businesses, for example by implementing an 'insolvency plan' <i>(<a href="https://de.wikipedia.org/wiki/Insolvenzplan" class="extiw" title="de:Insolvenzplan">Insolvenzplan</a>)</i>. While regular insolvency proceedings are led by a court-appointed insolvency administrator, 'debtor-in-possession' proceedings are common since the legislative changes in 2012. </p><p>For natural persons, the <i>Verbraucherinsolvenzverfahren</i> (literally "insolvency proceeding for individual consumers") allows discharge of all debts after three years, if certain conditions are met. </p> <div class="mw-heading mw-heading3"><h3 id="Hong_Kong">Hong Kong</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=11" title="Edit section: Hong Kong"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Hong_Kong_insolvency_law" title="Hong Kong insolvency law">Hong Kong insolvency law</a></div> <p>In <a href="/wiki/Hong_Kong" title="Hong Kong">Hong Kong</a>, insolvency is primarily governed by the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) and the Companies (Winding Up) Rules (Cap 32H). </p> <div class="mw-heading mw-heading3"><h3 id="India">India</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=12" title="Edit section: India"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Insolvency_and_Bankruptcy_Code" class="mw-redirect" title="Insolvency and Bankruptcy Code">Insolvency and Bankruptcy Code</a></div> <p>In <a href="/wiki/India" title="India">India</a>, bankruptcy and insolvency are generally regulated by the <a href="/wiki/Insolvency_and_Bankruptcy_Code" class="mw-redirect" title="Insolvency and Bankruptcy Code">Insolvency and Bankruptcy Code</a> 2016. The <a href="/wiki/Insolvency_and_Bankruptcy_Board_of_India" title="Insolvency and Bankruptcy Board of India">Insolvency and Bankruptcy Board of India (IBBI)</a> is the <a href="/wiki/Regulatory_agency" title="Regulatory agency">regulator</a> for overseeing insolvency <i>proceedings</i> and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in <a href="/wiki/India" title="India">India</a>. </p><p>Insolvent citizens may not contest/be appointed for any public office, nor may they participate in govt exams. They are also not allowed to emigrate out. </p> <div class="mw-heading mw-heading3"><h3 id="Iran">Iran</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=13" title="Edit section: Iran"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Iranian government Tax, finance and bankruptcy administration handles corporations . First insolvency law was adopted 1935. Those who claim inability are temporary exempt from debt payment.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Ireland">Ireland</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=14" title="Edit section: Ireland"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main articles: <a href="/wiki/Bankruptcy_Law_in_the_Republic_of_Ireland" title="Bankruptcy Law in the Republic of Ireland">Bankruptcy Law in the Republic of Ireland</a> and <a href="/wiki/Liquidation_in_Ireland" title="Liquidation in Ireland">Liquidation in Ireland</a></div> <p>In <a href="/wiki/Ireland" title="Ireland">Ireland</a>, insolvency is governed by the <a href="/wiki/Companies_Act_2014" title="Companies Act 2014">Companies Act 2014</a>. </p> <div class="mw-heading mw-heading3"><h3 id="Russia">Russia</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=15" title="Edit section: Russia"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Insolvency_law_of_Russia" title="Insolvency law of Russia">Insolvency law of Russia</a></div> <p>In Russia, insolvency law is governed by Federal Law No. 127-FZ "On Insolvency (Bankruptcy)" and Federal Law No. 40-FZ "On Insolvency (Bankruptcy) of Credit Institutions". </p> <div class="mw-heading mw-heading3"><h3 id="South_Africa">South Africa</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=16" title="Edit section: South Africa"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1251242444">.mw-parser-output .ambox{border:1px solid #a2a9b1;border-left:10px solid #36c;background-color:#fbfbfb;box-sizing:border-box}.mw-parser-output .ambox+link+.ambox,.mw-parser-output .ambox+link+style+.ambox,.mw-parser-output .ambox+link+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+style+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+link+.ambox{margin-top:-1px}html body.mediawiki .mw-parser-output .ambox.mbox-small-left{margin:4px 1em 4px 0;overflow:hidden;width:238px;border-collapse:collapse;font-size:88%;line-height:1.25em}.mw-parser-output .ambox-speedy{border-left:10px solid #b32424;background-color:#fee7e6}.mw-parser-output .ambox-delete{border-left:10px solid #b32424}.mw-parser-output .ambox-content{border-left:10px solid #f28500}.mw-parser-output .ambox-style{border-left:10px solid #fc3}.mw-parser-output .ambox-move{border-left:10px solid #9932cc}.mw-parser-output .ambox-protection{border-left:10px solid #a2a9b1}.mw-parser-output .ambox .mbox-text{border:none;padding:0.25em 0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}</style><table class="box-Unreferenced_section plainlinks metadata ambox ambox-content ambox-Unreferenced" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><a href="/wiki/File:Question_book-new.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/50px-Question_book-new.svg.png" decoding="async" width="50" height="39" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/75px-Question_book-new.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/100px-Question_book-new.svg.png 2x" data-file-width="512" data-file-height="399" /></a></span></div></td><td class="mbox-text"><div class="mbox-text-span">This section <b>does not <a href="/wiki/Wikipedia:Citing_sources" title="Wikipedia:Citing sources">cite</a> any <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">sources</a></b>.<span class="hide-when-compact"> Please help <a href="/wiki/Special:EditPage/Insolvency" title="Special:EditPage/Insolvency">improve this section</a> by <a href="/wiki/Help:Referencing_for_beginners" title="Help:Referencing for beginners">adding citations to reliable sources</a>. Unsourced material may be challenged and <a href="/wiki/Wikipedia:Verifiability#Burden_of_evidence" title="Wikipedia:Verifiability">removed</a>.</span> <span class="date-container"><i>(<span class="date">June 2019</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/South_African_insolvency_law" title="South African insolvency law">South African insolvency law</a></div> <p>In <a href="/wiki/South_Africa" title="South Africa">South Africa</a>, owners of businesses that had at any stage traded insolvently (i.e. that had a balance-sheet insolvency) become personally liable for the business's debts. Trading insolvently is often regarded as normal business practice in South Africa, as long as the business is able to fulfill its debt obligations when they fall due. </p> <div class="mw-heading mw-heading3"><h3 id="Switzerland">Switzerland</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=17" title="Edit section: Switzerland"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Insolvency_law_of_Switzerland" title="Insolvency law of Switzerland">Insolvency law of Switzerland</a></div> <p>Under <a href="/wiki/Switzerland" title="Switzerland">Swiss</a> law, insolvency or <a href="/wiki/Foreclosure" title="Foreclosure">foreclosure</a> may lead to the seizure and auctioning off of assets (generally in the case of private individuals) or to <a href="/wiki/Bankruptcy" title="Bankruptcy">bankruptcy</a> proceedings (generally in the case of registered commercial entities). </p> <div class="mw-heading mw-heading3"><h3 id="Turkey">Turkey</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=18" title="Edit section: Turkey"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Turkish insolvency law is regulated by Enforcement and Bankruptcy Law (Code No: 2004, Original Name: İcra ve İflas Kanunu). The main concept of the insolvency law is very similar to Swiss and German insolvency laws. Enforcement methods are realizing pledged property, seizure of assets and bankruptcy. </p> <div class="mw-heading mw-heading3"><h3 id="United_Kingdom">United Kingdom</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=19" title="Edit section: United Kingdom"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/United_Kingdom_insolvency_law" title="United Kingdom insolvency law">United Kingdom insolvency law</a></div> <div class="mw-heading mw-heading4"><h4 id="Insolvency_Act_1986">Insolvency Act 1986</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=20" title="Edit section: Insolvency Act 1986"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In the <a href="/wiki/United_Kingdom" title="United Kingdom">United Kingdom</a>, the term <a href="/wiki/Bankruptcy" title="Bankruptcy">bankruptcy</a> is reserved for individuals. Insolvency is defined both in terms of <a href="/wiki/Cash_flow" title="Cash flow">cash flow</a> and in terms of <a href="/wiki/Balance_sheet" title="Balance sheet">balance sheet</a> in the UK <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a>, Section 123, which reads in part: </p> <style data-mw-deduplicate="TemplateStyles:r1244412712">.mw-parser-output .templatequote{overflow:hidden;margin:1em 0;padding:0 32px}.mw-parser-output .templatequotecite{line-height:1.5em;text-align:left;margin-top:0}@media(min-width:500px){.mw-parser-output .templatequotecite{padding-left:1.6em}}</style><blockquote class="templatequote"> <p>123.-(1) A company is deemed unable to pay its debts ---<br />(a) if a creditor (by assignment or otherwise) to whom the company is indebted in a sum exceeding £750 then due has served on the company, by leaving it at the company's registered office, a written demand (in the prescribed form) requiring the company to pay the sum so due and the company has for 3 weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor,... (2) A company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company's assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities... </p> <div class="templatequotecite">— <cite><a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a>, Section 123 (Part IV, Chapter VI), p. 68.</cite></div></blockquote> <p>A company which is insolvent may be put into <a href="/wiki/Liquidation" title="Liquidation">liquidation</a> (sometimes referred to as winding-up). The directors and <a href="/wiki/Shareholders_in_the_United_Kingdom" title="Shareholders in the United Kingdom">shareholders</a> can instigate the liquidation process without court involvement by a shareholder resolution and the appointment of a licensed <a href="/wiki/Insolvency_Practitioner" class="mw-redirect" title="Insolvency Practitioner">Insolvency Practitioner</a> as liquidator. However, the liquidation will not be effective legally without the convening of a meeting of creditors who have the opportunity to appoint a liquidator of their own choice. This process is known as creditors voluntary liquidation (CVL), as opposed to members voluntary liquidation (MVL) which is for solvent companies. Alternatively, a creditor can petition the court for a winding-up order which, if granted, will place the company into what is called compulsory liquidation or winding up by the court. The liquidator realises the assets of the company and distributes funds realised to creditors according to their priorities, after the deduction of costs. In the case of <a href="/wiki/Sole_Trader_Insolvency" class="mw-redirect" title="Sole Trader Insolvency">Sole Trader Insolvency</a>, the insolvency options include <a href="/wiki/Individual_Voluntary_Arrangements" class="mw-redirect" title="Individual Voluntary Arrangements">Individual Voluntary Arrangements</a> and <a href="/wiki/Bankruptcy" title="Bankruptcy">Bankruptcy</a>. </p> <div class="mw-heading mw-heading4"><h4 id="Procedures">Procedures</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=21" title="Edit section: Procedures"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>It can be a civil and even a criminal offence for directors to allow a company to continue to trade whilst insolvent. However, two new insolvency procedures were introduced by the <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> which aim to provide time for the rescue of a company or, at least, its business. These are <b>Administration</b> and <a href="/wiki/Company_Voluntary_Arrangement" class="mw-redirect" title="Company Voluntary Arrangement">Company Voluntary Arrangement</a>: </p> <ul><li><b>Administration</b> is a procedure to protect a company from its creditors in order for it to be able to make significant operational changes or restructuring so that it could continue as a going concern, or at least in order to achieve a better outcome for creditors than via liquidation. In contrast to Chapter 11 in the US where the directors remain in control throughout that restructuring process, in the UK an Administrator is appointed who must be a licensed <a href="/wiki/Insolvency_Practitioner" class="mw-redirect" title="Insolvency Practitioner">Insolvency Practitioner</a> to manage the company's affairs to protect the creditors of the insolvent company and balance their respective interests. Unless the company itself is saved by this process, the company is subsequently put into liquidation to distribute the remaining funds.</li> <li>A <b>Company Voluntary Arrangement (CVA)</b> is a legal agreement between the company and its creditors, based on paying a fixed amount lower than the outstanding actual debt. These are normally based on a monthly payment, and at the end of the agreed term the remaining debt is written-off. The CVA is managed by a Supervisor who must be a licensed <a href="/wiki/Insolvency_Practitioner" class="mw-redirect" title="Insolvency Practitioner">Insolvency Practitioner</a>. If the CVA fails, the company is usually put into liquidation.</li></ul> <p>One particular type of <b>Administration</b> that is becoming more common is called <b>pre pack administration</b> (more information under <a href="/wiki/Administration_(law)" title="Administration (law)">administration (law)</a>). In this process, immediately after appointment the administrator completes a pre-arranged sale of the company's business, often to its directors or owners. The process can be seen as controversial because the creditors do not have the opportunity to vote against the sale. The rationale behind the device is that the swift sale of the business may be necessary or of benefit to enable a best price to be achieved. If the sale was delayed, creditors would ultimately lose out because the price obtainable for the assets would be reduced. </p> <div class="mw-heading mw-heading4"><h4 id="Receivership">Receivership</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=22" title="Edit section: Receivership"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In addition to the above-mentioned corporate insolvency procedures, a creditor holding security over an asset of the company may have the power to appoint an insolvency practitioner as administrative receiver or, in <a href="/wiki/Scotland" title="Scotland">Scotland</a>, receiver. The process, latterly known as <a href="/wiki/Administrative_receivership" class="mw-redirect" title="Administrative receivership">administrative receivership</a> or, in Scotland, receivership, has existed for many years and has often resulted in a successful rescue of a company's business via a sale, but not of the company itself. Since the introduction of the collective insolvency procedure of <b>Administration</b> in 1986, the legislators have decided to set a shelf life on the <a href="/wiki/Administrative_receivership" class="mw-redirect" title="Administrative receivership">administrative receivership</a> or, in Scotland, receivership procedure and it is no longer possible to appoint an administrative receiver or, in Scotland, receiver under security created after 15 September 2003. </p><p>In individual cases the bankruptcy estate is dealt by an official receiver, appointed by the court. In some cases the file is transferred to RTLU (OR Regional Trustee Liquidator Unit) that will assess your assets and income to see if you can contribute towards paying costs of bankruptcy or even discharge part of your debts. </p> <div class="mw-heading mw-heading3"><h3 id="United_States">United States</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=23" title="Edit section: United States"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Bankruptcy_in_the_United_States" title="Bankruptcy in the United States">Bankruptcy in the United States</a></div> <p>Under the <a href="/wiki/Uniform_Commercial_Code" title="Uniform Commercial Code">Uniform Commercial Code</a>, a person is considered to be insolvent when the party has ceased to pay its debts in the <a href="/wiki/Ordinary_course_of_business" title="Ordinary course of business">ordinary course of business</a>, or cannot pay its debts as they become due, or is insolvent within the meaning of the <a href="/wiki/Bankruptcy_in_the_United_States" title="Bankruptcy in the United States">Bankruptcy Code</a>. This is important because certain rights under the code may be invoked against an insolvent party which are otherwise unavailable. </p><p>The <a href="/wiki/United_States" title="United States">United States</a> has established insolvency regimes <sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (March 2009)">citation needed</span></a></i>]</sup> which aim to protect the insolvent individual or company from the creditors, and balance their respective interests. For example, see <a href="/wiki/Chapter_11,_Title_11,_United_States_Code" title="Chapter 11, Title 11, United States Code">Chapter 11, Title 11, United States Code</a>. However, some state courts have begun to find individual corporate officers and directors liable for driving a company deeper into bankruptcy, under the legal theory of "deepening insolvency".<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> </p><p>In determining whether a gift or a payment to a creditor is an unlawful preference, the date of the insolvency, rather than the date of the legally declared bankruptcy, will usually be the primary consideration. </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=24" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/Solvency" title="Solvency">Solvency</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=25" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist reflist-columns references-column-width" style="column-width: 30em;"> <ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFGraeme_Pietersz" class="citation web cs1">Graeme Pietersz. <a rel="nofollow" class="external text" href="http://moneyterms.co.uk/technical-insolvency/">"Moneyterms Investment Definitions"</a>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20170705225430/http://moneyterms.co.uk/technical-insolvency/">Archived</a> from the original on 2017-07-05<span class="reference-accessdate">. Retrieved <span class="nowrap">2013-12-27</span></span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Moneyterms+Investment+Definitions&rft.au=Graeme+Pietersz&rft_id=http%3A%2F%2Fmoneyterms.co.uk%2Ftechnical-insolvency%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3AInsolvency" class="Z3988"></span></span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text">Fundamentals of Corporate Finance, Ross-Westerfield-Jordan, 10th e, p.549</span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFGraeme_Pietersz" class="citation web cs1">Graeme Pietersz. <a rel="nofollow" class="external text" href="http://moneyterms.co.uk/insolvency/">"Moneyterms Investment Definitions"</a>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20170317013717/http://moneyterms.co.uk/insolvency/">Archived</a> from the original on 2017-03-17<span class="reference-accessdate">. Retrieved <span class="nowrap">2013-12-27</span></span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Moneyterms+Investment+Definitions&rft.au=Graeme+Pietersz&rft_id=http%3A%2F%2Fmoneyterms.co.uk%2Finsolvency%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3AInsolvency" class="Z3988"></span></span> </li> <li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text">Downes, John, and Jordan Elliot. Goodman. <i>Dictionary of Finance and Investment Terms</i>. Hauppauge, NY: Barron's Educational Series, 2003. Print.</span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text">UK Insolvency Act 1986, Section 123</span> </li> <li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text">Enterprise Bankruptcy Law of the People's Republic of China (August 27, 2006), Chapter 2, Section 2, Article 16.</span> </li> <li id="cite_note-Practitioner-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-Practitioner_7-0">^</a></b></span> <span class="reference-text">Joseph Swanson and Peter Marshall, <a href="/wiki/Houlihan_Lokey" title="Houlihan Lokey">Houlihan Lokey</a> and Lyndon Norley, Kirkland & Ellis International LLP (2008). A Practitioner's Guide to Corporate Restructuring. City & Financial Publishing, 1st edition <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-1-905121-31-1" title="Special:BookSources/978-1-905121-31-1">978-1-905121-31-1</a></span> </li> <li id="cite_note-CCCA-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-CCCA_8-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br03125.html">"Restructure your business through the Companies' Creditors Arrangement Act"</a>. Office of the Superintendent of Bankruptcy Canada. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20141210160931/http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br03125.html">Archived</a> from the original on 10 December 2014<span class="reference-accessdate">. Retrieved <span class="nowrap">11 December</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Restructure+your+business+through+the+Companies%27+Creditors+Arrangement+Act&rft.pub=Office+of+the+Superintendent+of+Bankruptcy+Canada&rft_id=http%3A%2F%2Fwww.ic.gc.ca%2Feic%2Fsite%2Fbsf-osb.nsf%2Feng%2Fbr03125.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AInsolvency" class="Z3988"></span></span> </li> <li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.gesetze-im-internet.de/englisch_inso/">Insolvency Statute</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20190311192704/http://www.gesetze-im-internet.de/englisch_inso/">Archived</a> 2019-03-11 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a> Bundesamt für Justiz</span> </li> <li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external free" href="https://rc.majlis.ir/fa/law/show/92296">https://rc.majlis.ir/fa/law/show/92296</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20200202172156/http://rc.majlis.ir/fa/law/show/92296">Archived</a> 2020-02-02 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a></span> </li> <li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1 cs1-prop-foreign-lang-source"><a rel="nofollow" class="external text" href="https://www.irna.ir/news/80786565/%D8%A7%D8%B9%D8%B3%D8%A7%D8%B1-%DA%86%D9%8A%D8%B3%D8%AA-%D9%88-%D9%85%D8%B9%D8%B3%D8%B1-%D9%83%D9%8A%D8%B3%D8%AA">"اعسار چيست و معسر كيست؟"</a>. <i>ایرنا</i> (in Persian). 2013-08-24<span class="reference-accessdate">. Retrieved <span class="nowrap">2024-05-15</span></span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=%D8%A7%DB%8C%D8%B1%D9%86%D8%A7&rft.atitle=%D8%A7%D8%B9%D8%B3%D8%A7%D8%B1+%DA%86%D9%8A%D8%B3%D8%AA+%D9%88+%D9%85%D8%B9%D8%B3%D8%B1+%D9%83%D9%8A%D8%B3%D8%AA%D8%9F&rft.date=2013-08-24&rft_id=https%3A%2F%2Fwww.irna.ir%2Fnews%2F80786565%2F%25D8%25A7%25D8%25B9%25D8%25B3%25D8%25A7%25D8%25B1-%25DA%2586%25D9%258A%25D8%25B3%25D8%25AA-%25D9%2588-%25D9%2585%25D8%25B9%25D8%25B3%25D8%25B1-%25D9%2583%25D9%258A%25D8%25B3%25D8%25AA&rfr_id=info%3Asid%2Fen.wikipedia.org%3AInsolvency" class="Z3988"></span></span> </li> <li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFThompson2007" class="citation journal cs1">Thompson, David (2007). "A Critique of 'Deepening Insolvency,' a New Bankruptcy Tort Theory". <i>Stanford Journal of Law, Business & Finance</i>. <b>12</b> (2): 536. <a href="/wiki/SSRN_(identifier)" class="mw-redirect" title="SSRN (identifier)">SSRN</a> <a rel="nofollow" class="external text" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1377375">1377375</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Stanford+Journal+of+Law%2C+Business+%26+Finance&rft.atitle=A+Critique+of+%27Deepening+Insolvency%2C%27+a+New+Bankruptcy+Tort+Theory&rft.volume=12&rft.issue=2&rft.pages=536&rft.date=2007&rft_id=https%3A%2F%2Fpapers.ssrn.com%2Fsol3%2Fpapers.cfm%3Fabstract_id%3D1377375%23id-name%3DSSRN&rft.aulast=Thompson&rft.aufirst=David&rfr_id=info%3Asid%2Fen.wikipedia.org%3AInsolvency" class="Z3988"></span></span> </li> </ol></div> <div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=26" title="Edit section: Further reading"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFMańko" class="citation web cs1">Mańko, Rafał. <a rel="nofollow" class="external text" href="http://www.europarl.europa.eu/RegData/bibliotheque/briefing/2013/130476/LDM_BRI(2013)130476_REV1_EN.pdf">"Cross-border insolvency law in the EU"</a> <span class="cs1-format">(PDF)</span>. <i>Library Briefing</i>. Library of the European Parliament. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20131228193157/http://www.europarl.europa.eu/RegData/bibliotheque/briefing/2013/130476/LDM_BRI%282013%29130476_REV1_EN.pdf">Archived</a> <span class="cs1-format">(PDF)</span> from the original on 28 December 2013<span class="reference-accessdate">. Retrieved <span class="nowrap">21 February</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Library+Briefing&rft.atitle=Cross-border+insolvency+law+in+the+EU&rft.aulast=Ma%C5%84ko&rft.aufirst=Rafa%C5%82&rft_id=http%3A%2F%2Fwww.europarl.europa.eu%2FRegData%2Fbibliotheque%2Fbriefing%2F2013%2F130476%2FLDM_BRI%282013%29130476_REV1_EN.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AInsolvency" class="Z3988"></span></li></ul> <div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Insolvency&action=edit&section=27" title="Edit section: External links"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1235681985">.mw-parser-output .side-box{margin:4px 0;box-sizing:border-box;border:1px solid #aaa;font-size:88%;line-height:1.25em;background-color:var(--background-color-interactive-subtle,#f8f9fa);display:flow-root}.mw-parser-output .side-box-abovebelow,.mw-parser-output .side-box-text{padding:0.25em 0.9em}.mw-parser-output .side-box-image{padding:2px 0 2px 0.9em;text-align:center}.mw-parser-output .side-box-imageright{padding:2px 0.9em 2px 0;text-align:center}@media(min-width:500px){.mw-parser-output .side-box-flex{display:flex;align-items:center}.mw-parser-output .side-box-text{flex:1;min-width:0}}@media(min-width:720px){.mw-parser-output .side-box{width:238px}.mw-parser-output .side-box-right{clear:right;float:right;margin-left:1em}.mw-parser-output .side-box-left{margin-right:1em}}</style><style data-mw-deduplicate="TemplateStyles:r1237033735">@media print{body.ns-0 .mw-parser-output .sistersitebox{display:none!important}}@media screen{html.skin-theme-clientpref-night .mw-parser-output .sistersitebox img[src*="Wiktionary-logo-en-v2.svg"]{background-color:white}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .sistersitebox img[src*="Wiktionary-logo-en-v2.svg"]{background-color:white}}</style><div class="side-box side-box-right plainlinks sistersitebox"><style data-mw-deduplicate="TemplateStyles:r1126788409">.mw-parser-output .plainlist ol,.mw-parser-output .plainlist ul{line-height:inherit;list-style:none;margin:0;padding:0}.mw-parser-output .plainlist ol li,.mw-parser-output .plainlist ul li{margin-bottom:0}</style> <div class="side-box-flex"> <div class="side-box-image"><span class="noviewer" typeof="mw:File"><span><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/9/99/Wiktionary-logo-en-v2.svg/40px-Wiktionary-logo-en-v2.svg.png" decoding="async" width="40" height="40" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/9/99/Wiktionary-logo-en-v2.svg/60px-Wiktionary-logo-en-v2.svg.png 1.5x, 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href="https://ftl.toolforge.org/cgi-bin/ftl?st=wp&su=Insolvency">Resources in your library</a></li> </ul></div></div> </div> <ul><li><a rel="nofollow" class="external text" href="https://www.eulerhermes.com/content/dam/onemarketing/euh/eulerhermes_com/erd/map/insolvency-map/2018/insolvency-risk-q2-2018-map-Jun18.pdf">Infographic Insolvency Risk Map Q2 2018 – Euler Hermes forecast</a>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20200307001612/https://www.eulerhermes.com/content/dam/onemarketing/euh/eulerhermes_com/erd/map/insolvency-map/2018/insolvency-risk-q2-2018-map-Jun18.pdf">Archived</a> 2020-03-07 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>.</li></ul> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1236075235">.mw-parser-output .navbox{box-sizing:border-box;border:1px solid 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.navbox{display:none!important}}</style></div><div role="navigation" class="navbox" aria-labelledby="Debt" style="padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Debt" title="Template:Debt"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Debt" title="Template talk:Debt"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Debt" title="Special:EditPage/Template:Debt"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Debt" 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