than assets,

and they are 

  takes the

matter to court the person or company is declared bankrupt. A bankrupt company

goes into liquidation or receivership or is wound up. The court appoints a

liquidator (or receiver, or administrator) who realises (i.e., sells) the

company’s  

   in order to

repay creditors. A failing business can choose voluntary winding up, in which

case it appoints its own liquidator. In America a corporation in difficulty can

file for Chapter Eleven and propose a 

  plan; it is

then temporarily protected from its creditors and given some time to attempt to

solve its problems. A failing business that knows it has no reasonable chance

of avoiding bankruptcy should stop trading. Continuing to do business, and

building up debts with creditors that will never be paid is called wrongful

trading and is illegal.