The insolvent party cannot hold certain government positions during the time of sequestration and cannot be a director of a company or member of a close corporation. With voluntary sequestration, the person surrenders the estate and the court appoints a trustee/curator to oversee the sale of assets and distribution of benefits among the creditors. This means they no longer have control over their financial estate. If a person is declared bankrupt, their legal status is diminished. However, the business can request business rescue assistance or be placed under business rescue if there is a chance that it can be brought back to a solvent state. Indeed, according to the Company’s Act, the business, by law, must stop trading and must liquidate if its assets exceed its liabilities. Unlike with a natural person who must have enough assets to ensure the sale thereof on auction can bring about enough funds to pay for the sequestration and the minimum benefits to the creditors, the business entity does not need to have assets to liquidate. In the case of a business entity, the legal process is called liquidation. The court must declare the person or entity bankrupt. When the person does not have enough assets to sell to pay off the debts and their expenses exceed their income, the creditors can apply for their sequestration or the person can apply to court to be sequestrated. The insolvent state can be changed if the person is able to sell their assets and pay off the debts. A person can be insolvent and not yet bankrupt. When we consider the question of what the legal definition of insolvency is, we need to clarify that bankruptcy and insolvency differ. When we consider the question of what a legal definition of insolvency is, then a person or entity can still borrow money or arrange for funding to pay the debts when due, but if the person or entity’s liabilities exceed their assets and they are unable to pay debts when due, then the person or entity is truly insolvent. This means that the person or company cannot pay the debts on the due date and according to the agreed payment terms.
It is when a business entity or person is unable to meet their financial obligations to their creditors as and when the debts are due. So, What is the Legal Definition of Insolvency?
With so many misconceptions about insolvency, bankruptcy, liquidation, and sequestration, it is time to answer the question: “what is the legal definition of insolvency?” * Liquid Technology’s data destruction services meet or exceed both NIST 800-88 and D O D 5220.22-M standards.Answers on Questions: What is the Legal Definition of Insolvency?
Feel free to include a spreadsheet of your surplus inventory to help expedite the computer liquidation process. We can be reached by calling our toll-free number, by email or simply complete our quick form and a Liquid Technology Assessment Specialist will promptly respond to you. We provide quick and easy liquidation of all your excess assets, and we specialize in offering fair prices and fast removal of your surplus equipment. We’re a National Provider of Experienced Computer LiquidationĬontact Liquid Technology’s Assessment Specialists for reliable and experienced computer liquidation services now. Brokerage and/or purchase of excess equipment.Environmentally-friendly recycling or disposal.Data erasure/wiping or disk destruction*.Liquid Technology’s suite of IT liquidation services include:
We also guarantee fast payment for your hardware following the computer liquidation process. Our Assessment Specialists oversee the entire computer hardware liquidation process, from the initial quote to the expedited removal of the equipment by our expert team of computer liquidators.
At Liquid Technology, we pride ourselves on providing fast, fair and reliable computer and IT liquidation.