Bankruptcy & Insolvency

Bankruptcy and Insolvency are the worst scenarios which could happen to any company or individual. However, Insolvency and Bankruptcy Code aims to offer an alternate and timely solution for both the debtors and creditors. Many people often mix up the terms “insolvency” and “bankruptcy”, assuming them to mean the same thing. However, these two terms, though similar, have different meanings.

Practice Areas

Bankruptcy & Insolvency

Bankruptcy is a legal status that a person or business can enter when they cannot repay the debts they owe to creditors. When a person or business declares bankruptcy, their legal status is different than it was before the declaration, and they have certain privileges and restrictions that were not formerly available to or placed upon them, respectively. 

Insolvency is the state of being unable to make payments to creditors. A person or a business can be insolvent, or in a state of insolvency. There are two types of insolvency: cash-flow insolvency and balance-sheet insolvency. Cash-flow insolvency occurs when a person or business has enough assets to pay their debts, but those assets aren’t liquid.

Insolvency vs. Bankruptcy

  • Insolvency is a condition of monetary trouble that may not necessary lead to bankruptcy.

  • Bankruptcy is a court proceeding in bankruptcy court that decides how a bankrupt indebted person will resolve their debts through the sale of their assets.

  • An individual or a business can be indebted or insolvent without being bankrupt, generally if the indebtedness isn’t perpetual and avertible before creditors begin taking legal action to collect past due debts.

Bankruptcy & Insolvency

Bankruptcy is a legal status that a person or business can enter when they cannot repay the debts they owe to creditors. When a person or business declares bankruptcy, their legal status is different than it was before the declaration, and they have certain privileges and restrictions that were not formerly available to or placed upon them, respectively. 

Insolvency is the state of being unable to make payments to creditors. A person or a business can be insolvent, or in a state of insolvency. There are two types of insolvency: cash-flow insolvency and balance-sheet insolvency. Cash-flow insolvency occurs when a person or business has enough assets to pay their debts, but those assets aren’t liquid.

Insolvency vs. Bankruptcy

  • Insolvency is a condition of monetary trouble that may not necessary lead to bankruptcy.

  • Bankruptcy is a court proceeding in bankruptcy court that decides how a bankrupt indebted person will resolve their debts through the sale of their assets.

  • An individual or a business can be indebted or insolvent without being bankrupt, generally if the indebtedness isn’t perpetual and avertible before creditors begin taking legal action to collect past due debts.

Kirpal & Associates can assist you!

Bankruptcy involves a variety of complex financial transactions that require the restructuring of entities and/or debt. Kirpal & Associates decades practicing law on behalf of individual and businesses has allowed us to hone our skills to cut through anything in our path. We help manage every aspect of your personal or corporate bankruptcy so that you can focus on rebuilding once the courts clear the path.

If you or your business has entered a state of insolvency, Kirpal & Associates today and discover the possibilities of declaring bankruptcy. Life after bankruptcy in singapore is not only possible, but preferable to living in a state of insolvency.

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