answersLogoWhite

0

Different countries and jurisdictions have different legal definitions of bankruptcy for a corporation, but most countries employ one or a combination of the following:

  • Cash flow bankruptcy, where a corporation is unable to pay its debts as they fall due.
  • Balance sheet bankruptcy, where the corporation's assets are worth less than its liabilities.
  • Technical bankruptcy, where a corporation is deemed to be bankrupt regardless of its true financial position, eg. because it failed to pay a judgment debt or (in some jurisdictions) pay a statutory demand for money, or formally admitted or filed for bankruptcy.

Even within these definitions, different jurisdictions treat aspects in different ways. For example, in some countries prospective or contingent debts are relevant to determining bankruptcy, and in others they are not. Similarly, some countries require assets to be valued on a market value basis, whereas others are entitled to rely upon book value.
User Avatar

Wiki User

15y ago

What else can I help you with?

Related Questions

When does a company declare bankruptcy?

A company is bankrupt when it is insolvent.it cannot settle its indebtedness.


Can you work after you declare bankruptcy?

Yes, you are not required to be unemployed to declare bankruptcy.


Did Lucent Technologies ever declare Chapter 11 bankruptcy?

no, they merged with a french company alcatel.


How do I decide how to declare bankruptcy?

That's easy because there are many programs out designed for this called debt counseling. You can also go directly to a bankruptcy company and get help directly.


Did the US declare bankruptcy?

No


Is it possible to just declare bankruptcy on credit cards?

You can declare bankruptcy due to credit card debts, yes.


How often can you declare Chapter 7 bankruptcy?

You can declare Chapter 7 bankruptcy once every 8 years.


When is it necessary to declare bankruptcy?

It is necessary to declare bankruptcy when a person cannot afford to continue paying for bills and other things they need. A person may declare bankruptcy if their business is not making any money.


How long after the first bankruptcy you can declare a second bankruptcy?

It takes seven to ten years after you initially declare bankruptcy for it to drop off your credit report, and you really should wait at least 1-2 years after that to declare again I hope that helped.


When was the Bankcard company declared bankrupt?

Bankcard company need to carefully manage their budget as do all companies really. Overspending or not earning enough can cause companies to declare bankruptcy. Even famous companies like THQ declared bankruptcy in 2012.


Can an elected official declare bankruptcy?

Yes


Did Iceland declare bankruptcy?

wanna do city