Insolvency Practitioner Quiz

A legal agreement for a partnership to resolve financial troubles with creditor support.

Once approved, a PVA binds all creditors regardless of their involvement.

A pre-pack is a sale of a company's assets agreed before insolvency.

To preserve value for the business, creditors, and shareholders.

A CVA keeps the business intact, a Pre-Pack transfers ownership while leaving liabilities behind.

CVAs are public processes with all creditors engaged, leading to increased involvement.

Owner-managed businesses often choose CVAs to restructure and survive financial issues.

Unsecured creditors may support a CVA for better future revenue and relationships with suppliers.

A proposal by directors for partial or full payment of debts.

Liquidation ordered by courts due to unpaid creditor petitions.

A person or entity owed money.

A meeting for creditors to appoint insolvency practitioners or consider proposals.

An insolvency solution for individuals with low liabilities and minimal income.

Release from liability granted to a bankrupt after a bankruptcy order.

Removal of a director's right to manage a company for misconduct.

Winding-up of an insolvent company by shareholder resolution.

A legal mechanism allowing suppliers to retain ownership of goods until payment is received.

A compromise or arrangement between a company and its creditors under the Companies Act 2006.

A creditor with security over the debtor’s assets, prioritized in payments.

A charge or mortgage on assets to secure repayment of a debt.

Personal bankruptcy term used in Scotland under the Bankruptcy (Scotland) Act 1985.

An individual who gives directions to a company’s directors without being an official director.

A formal notice demanding payment of a debt within 21 days, leading to potential bankruptcy.

Laws ensuring employee contracts transfer automatically during a business sale.

Process that ends a company’s existence by distributing assets to creditors/shareholders.

An official receiver or licensed IP assigned to wind up a company's affairs.

A shareholder or subscriber of a company undergoing insolvency.

A suspension of creditors' legal rights against a company or individual.

Breach of duty regarding a company's funds or property by its directors or managers.

An insolvency procedure where creditors agree to terms with a debtor.

A company-initiated liquidation, not imposed by a court.

A court order to place a company into compulsory liquidation.

Insufficient assets to meet debts or unable to pay debts on time.

A licensed individual authorized to handle insolvency matters.

A protection court order for a debtor during a voluntary arrangement process.

Recognition of a debt or a court decision after trial.

An IP acts on behalf of creditors in insolvency matters.

IP is compensated from the assets of the insolvent company or individual.

Employee fate depends on the insolvency procedure used.

Employees of a closing insolvent company may be entitled to redundancy payments.

The IP reports director conduct for potential disqualification, unless it's a voluntary arrangement.

Continuing to trade when liquidation is inevitable, causing losses to creditors.

European Regulation coordinates insolvency proceedings across EU countries.

A preventative restructuring option for solvent companies in France.