Bankruptcy

From Wikipedia, the free encyclopedia

"Bankrupt" redirects here. For the Phoenix album, see Bankrupt!

Notice of closure attached to the door of a Computer Shop outlet the day after its parent company declared "bankruptcy" (strictly, put into administration) in the United Kingdom

Insolvency
Insolvency processes
Administration Bankruptcy Chapter 7 (US) CVA Conservatorship Dissolution Examinership IVA Liquidation Provisional liquidation Receivership
Officials
Insolvency practitioner Liquidator Referee in Bankruptcy Trustee in bankruptcy
Claimants
Creditor Preferential creditor Secured creditor Unsecured creditor
Restructuring
Chapter 11 (US) Cram down Restructuring Scheme of arrangement
Avoidance regimes
Fraudulent conveyance Undervalue transaction Unfair preference Voidable floating charge
Offences
Fraudulent trading Misfeasance Trading while insolvent Wrongful trading
Security
Floating charge Lien Mortgage Second lien loan Security interest
International
Chapter 15 (US) Cross-border insolvency EC Insolvency Regulation UNCITRAL Model Law
By country
Australia BVI Canada Cayman China Hong Kong India Ireland Russia Switzerland UK USA
Other
Anti-deprivation rule Bankruptcy alternatives Creditor's rights Debtor Default Financial distress History of bankruptcy law Pari passu Pre-packaged insolvency Sovereign default Subordination
v t e

Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.
Bankruptcy is not the only legal status that an insolvent person may have, and the term bankruptcy is therefore not a synonym for insolvency. In some countries, including the United Kingdom, bankruptcy is limited to individuals, and other forms of insolvency proceedings (such as liquidation and administration) are applied to companies. In the United States, bankruptcy is applied more broadly to formal insolvency proceedings. In France, the cognate French word banqueroute is used solely for cases of fraudulent bankruptcy, whereas the term faillite (cognate of "failure") is used for bankruptcy in accordance with the law.^[1]