Bankruptcy or Liquidation?

Posted On: 28th April 2021
Bankruptcy or Liquidation?

The terms bankruptcy and liquidation are often used erroneously. Put simply, bankruptcy relates to an individual and liquidation relates to a company. In Australia bankruptcy is a legal process for an individual (rather than a corporate entity) when they are unable to repay their debts. The Bankruptcy Act 1966 covers insolvency for individuals. Perhaps the reason that terms are used incorrectly arises from the USA where “bankruptcy” is commonly used for a company which is insolvent (the inability to pay its debts when they are due) and companies can file for bankruptcy.

Read full article here.

Posted By: BTG Global Advisory

Posted On: 28th April 2021

BTG Global Advisory is one of the world’s largest specialist independent financial advisory alliances.