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What is ‘filing an insolvency’?

What’s insolvency?

My dad lost almost everything in business.. so we have to pay our investors about a crore of money.. all that is left is a job for me and my mom… and few furnitures at office and home as our movable and immovable assets.. We do not have anything with us to repay… In this case what will happen if i file a insolvency?

Will i and my mother loose our jobs? will ther be any effect on my future?


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2 Responses to "What is ‘filing an insolvency’?"

  1. knitting bear says:
    Filing an insolvency is when you go to court & show that you have no assets to liquidate to pay the bills. By the way you worded your question, it sounds like dad died & his business failed. All you have to do is file paperwork with the probate court that shows that all assets were lost in the business venture & provide a copy of this paperwork, after the court has signed off on it, to your creditors to show there is nothing left to pay them with. If things were in his name only, they can’t affect you personally. If you or mom cosigned any of the credit lines, you can be held equally liable.
  2. Dan B says:
    Investors don’t get paid back if a business fails. Investors are part owners and as such they reap the benefits and suffer the losses. That’s the risk investors take when they invest in a business.

    If those “investors” are actually lenders,. then the assets of the business will be used to settle any debts. Once all of the assets are gone, there’s nothing left ot pay the debts. However, it depends upon how the business was organized. A Limited Liability Company limits the liability for debts to the assets of the business. Personal assets are protected.

    If the business was organized as a family business, then everything the family owns is subject to sale to pay the debts. There are limits as to what can be used and sold to pay the debts.

    You should be talking to an attorney. You won’t lose your jobs.

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