Insolvency is separated into Corporate (company) and Personal (individuals) branches. Each side of insolvency is broadly the same although differences do arise.
Corporate Insolvency deals with the affairs of limited companies. The various scenarios that companies can enter into are informal restructurings, Proposals, Bankruptcies, Plans of Arrangement, and informal wind downs.
Bankruptcies will almost certainly spell the end of a business but depending upon circumstances the other actions may leave a viable enterprise. Restructuring a company’s capital can even avoid the need for a formal insolvency procedure altogether.
Personal Insolvency deals with the affairs of those who are not protected by limited liability. In other words, individual persons with debts, partnerships and some unincorporated businesses. Difficulties are addressed via Proposals, Bankruptcies, Deeds of Arrangement and informal settlements with creditors.