You’re insolvent if you are unable to pay your debts!
Insolvency law in South African law refers to a status of diminished legal capacity imposed by the courts on individual persons, companies, close corporations, partnerships or trusts who are unable to pay their debts, or whose liabilities exceed their assets.
The insolvent’s diminished legal capacity entails deprivation of certain of his important legal capacities and rights, in the interests of protecting other persons, primarily the general body of existing creditors, but also prospective creditors.
Debtor Not Paying? Consider a Liquidation Application - Bad debt is a major issue for many businesses in these hard economic times – not taking robust steps to collect it could be fatal to your own financial position. So if you are being given the run-around by a recalcitrant corporate debtor, take advice on whether an appropriate and cost-effective remedy for you might […] Directors at War and the Liquidation Option – A Tale of Sibling Rivalry - A company’s directors have both the power and the duty to manage the company’s affairs for its benefit. When two or more directors are in place, it’s perhaps natural for the occasional disagreement to arise between them. Indeed, regular expression of a variety of different viewpoints and ideas can make for a strong, dynamic board […]