Liquidation is the process of ending a company by redistributing its assets. Companies can be liquidated voluntarily or compulsorily through court orders. Informal liquidation refers to companies seeking to sell assets at discount
Bankruptcy provides legal means to discharge debts through liquidation or repayment plan. Process can take from few months to several years. Credit counseling must be completed within last 180 days. Bankruptcy courts operate under federal district court system
Execution means carrying out an act or completing a course of conduct. In criminal law, execution refers to carrying out death sentences
Heir's assets must not cover debt and heir must not have bankruptcy. Refusal must be made to harm creditors. Creditors must have insufficient security to cover receivables
Bankruptcy is a legal process to resolve overwhelming debt. It stops debt collection calls, lawsuits and wage garnishment. Process requires attorney assistance and can take 7-10 years to appear on credit report
Pari passu means "in equal step" in Latin. Used in lending agreements and bankruptcy proceedings. Ensures equal treatment of certain claim holders