破产与重组法

Corporate Insolvency — A company is insolvent if it cannot pay its debts as they fall due (cash-flow test) or its liabilities exceed its assets (balance-sheet test) (s.123 Insolvency Act 1986).

Administration — A procedure to rescue a company as a going concern, achieve a better result for creditors than winding up, or realise property to pay secured/preferential creditors (Schedule B1, Insolvency Act 1986).

Liquidation — The process of winding up a company and distributing its assets. May be voluntary (members' or creditors') or compulsory (by court order on a petition).

Company Voluntary Arrangement (CVA) — A binding agreement between a company and its creditors to pay debts over time, supervised by an insolvency practitioner.

Bankruptcy — The personal insolvency equivalent for individuals who cannot pay their debts. A bankruptcy order is made by the court, and a trustee in bankruptcy administers the estate.

Individual Voluntary Arrangement (IVA) — A formal agreement between an individual and creditors to repay debts, supervised by an insolvency practitioner.

Wrongful Trading — Directors may be personally liable if they continued trading when they knew or ought to have concluded there was no reasonable prospect of avoiding insolvent liquidation (s.214 IA 1986).

Fraudulent Trading — Where a company's business is carried on with intent to defraud creditors, those knowingly party to it may be personally liable (s.213 IA 1986).