Insolvency

Whether you are an individual or a company that may be at risk of facing bankruptcy or is intending to declare bankrupt, it is always important to understand how bankruptcy may affect you in the long term.

Personal Insolvency
If you have failed to repay your debts, you may be at risk of facing a bankruptcy order which may be brought against you by your creditor or, voluntarily applied by yourself. Upon being declared bankrupt by the Court, all your assets shall be collected, sold and converted into cash and distributed to re-pay your creditors.

Further, once declared bankrupt, you may face the following consequences and/or restrictions:
– Your credibility and reputation would be affected
– Your financial affairs including but not limited to management and realisation of assets shall be managed by another person appointed by the Court until the bankruptcy order is discharged;
– You cannot directly or indirectly deal or operate a business
– You may also be barred from working in particular trades and professions, for example, as a lawyer, an estate agent, an insurance agent, a securities dealer or act as a director of a limited company

Corporate Insolvency
Where a company encounters difficulty in paying off its debts or is unable to pay its debts, the company or the creditors of the company may apply to dissolve the company such that its assets can be realized and converted into cash.

Creditors who commonly apply for Winding-Up Proceedings may include unpaid employees of the company who have not been paid their wages, shareholders, directors, financial institutions who have lent money to the company, suppliers etc.

Our Services
We understand the difficulties that you may face if you are at risk of facing bankruptcy or is intending to apply for bankruptcy or is declared bankrupt. Regardless, at Kim & Company, Solicitors, we shall not hesitate to help and provide you with bespoke and pragmatic solutions to overcome your difficulties no matter how complicated they may be.