What are the different types of insolvency?
The four primary types of insolvency are Liquidation (Voluntary & Compulsory), Administration , Bankruptcy, and Voluntary arrangements.
Liquidation is the process of selling off assets to repay creditors and dissolve a business.
Administration is typically used as a process to save a business, by most likely either selling the whole business or part of the business.
Bankruptcy is a legal enforcement of insolvency by the courts to an individual, involving the selling of assets and may include paying a portion of future income towards the estate.
Voluntary arrangements are negotiated agreements between debtors and creditors to repay debts over a specified period.
