Legal Procedures in Jersey
A declaration of insolvency to the winding up and liquidation of assets, approaches to it can differ from country to country, with significant differences found even with Commonwealth jurisdictions.
In Jersey, the law provides for two principle methods of liquidating a registered Jersey company: désastre and winding-up. The position in relation to individuals is more complex, it includes désastre, dégrèvement and remise des biens.
As creditor, the debtor company or, in some circumstances, the Jersey Financial Services Commission (JFSC) can petition for bankruptcy. A registered Jersey company must be insolvent in terms of the cash flow test yet retaining assets that may be realised for a single creditor or the debtor company to make a claim. Once the declaration of bankruptcy is made, the property of the company and the powers of the directors are vested in the Viscount. Sinels can advise clients on various options and outcomes for achieving bankruptcy and for obtaining preference in a bankruptcy or for extracting assets.Contact us