In accounting why liquidating is declaired Lvesexchat
Bankruptcy only applies to individuals (not companies).
When you become bankrupt, you are declared by law to be unable to pay your debts.
The following check sets out points to consider when preparing such a procedure:1. See the ICSA guide Communications with Shareholders 2007.
About the author The full article is available to registered Accounting uk members only.
Furthermore an interim dividend has also been declared.
There is no paperwork to support the distribution and the latest accounts do not show sufficient distributable profits.
If you operate your business as a sole trader or partnership, you or your partners can become bankrupt as individuals (the business itself doesn't become bankrupt).
To read the rest of this article you’ll need to login or register.
Registration is FREE and allows you to view all content, ask questions, comment and much more.
It will get rid of most of your debts and debt collectors will stop contacting you.
Bankruptcy lasts for 3 years and can affect your financial future, so it should be considered as a last resort. When a company can't pay its debts and goes into liquidation, it stops operating.
Search for in accounting why liquidating is declaired:
Their liability is limited to the share capital they have subscribed for.