insolvency bankruptcy difference

[mage lang="en|de|en" source="flickr"]insolvency bankruptcy difference[/mage]
Debt collection and bankruptcy law?

Can anyone explain the difference between bankruptcy and insolvency proceedings?

Bankruptcy is the inability to pay debts as they due to (technical definition). Insolvency, which often follows, but not always and necessarily insolvency. A person can Bankrupt be provided on request to the court by a creditor / s, the decision has received on debt / s, where the amounts due by a certain level Act exceed determined. (Technically, a bankruptcy petition) but it is possible, people who turn the court to have themselves declared bankrupt, probably pre-empted Creditors. Bankruptcy applies to individuals and businesses, but not limited companies, where "Liquidation" is the process that they Force. The relaxed rules on the bankruptcy of applications in recent times, it has helped to increase dramatically. EDIT. Retired accountant, you will understand that the above is only a very general idea. Sometimes the term "bankruptcy" is used as a generic term to embrace both bankruptcy and liquidation, etc.

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