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Qianlizhixing Posted 19 years ago
Legal Studies

what is the difference of bankruptcy and insolvency?

any applicable bankruptcy or insolvency law or law providing relief from creditors

Can anyone tell me their difference?

Thanks very much
  

Top answer

Individuals go bankrupt, companies go into insolvency.

— Nona the brit

  • Individuals go bankrupt, companies go into insolvency.
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2 Answers
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Individuals go bankrupt, companies go into insolvency.
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Yes, this is correct in England. However, in the US both companies and private individuals are covered by the federal bankruptcy code. So, in both cases Bankruptcy is used. The only difference is which chapter teh company or private person file under (i.e. corporate, Chapter 7 (straight bankruptcy) or Chapter 11 (reorganization); personal, Chapters 7 or 13 (equivalent of Chapter 11 for individual
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