Podcast
Questions and Answers
What term is used for private limited companies when they are unable to pay their debts?
What term is used for private limited companies when they are unable to pay their debts?
- Bankrupt
- Liquidated (correct)
- Put on hold
- Debtorized
What options are available to a debtor before formal procedures like bankruptcy or IVA?
What options are available to a debtor before formal procedures like bankruptcy or IVA?
- Closing the business immediately
- Seeking an emergency loan
- Selling assets informally
- Informally renegotiating payment terms (correct)
Why might an individual be unable to pay their debts as a sole trader?
Why might an individual be unable to pay their debts as a sole trader?
- Business partnership failure
- They refused to pay
- Personal guarantee as a director
- Unlimited liability for business debts (correct)
What process is generally used for individuals who cannot pay their debts?
What process is generally used for individuals who cannot pay their debts?
In which situation might creditors start looking at a sole trader's personal assets to cover business debts?
In which situation might creditors start looking at a sole trader's personal assets to cover business debts?
What is the consequence of limited liability for shareholders and directors of a limited company?
What is the consequence of limited liability for shareholders and directors of a limited company?
Under what circumstances can a debtor be made bankrupt?
Under what circumstances can a debtor be made bankrupt?
When might a bank seek personal guarantees from directors of a limited company?
When might a bank seek personal guarantees from directors of a limited company?
What is the role of the Official Receiver in bankruptcy proceedings?
What is the role of the Official Receiver in bankruptcy proceedings?
What is the key difference in liability between a partnership and a limited company?
What is the key difference in liability between a partnership and a limited company?
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