Business Insolvency
In tough economic times, many business ventures fail despite the owners' best efforts. If your company has no hope of paying its bills, you may wish to enter some form of insolvency procedure to obtain the benefit of a moratorium from claims by your creditors. In the U.K., this will typically mean calling in an administrator, who will try to rescue viable parts of the business or seek to pay off creditors. If a period under administration cannot save the business, the directors can propose a creditors' voluntary arrangement, which will see a liquidator closing down the company. The company could also be liquidated under court order. Insolvency practices differ around the world. For instance, India does not have a bankruptcy code as such. Public enterprises in trouble are called "sick units" and are referred to the Board for Industrial and Financial Reconstruction (BIFR). If the company cannot be turned around, the BIFR appoints a liquidator to dispose of the company's assets.
