Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

> The technical term for a business incapable of paying its employees is "bankrupt".

No, its "insolvent". Insolvency can lead to bankruptcy, but they aren't the same thing.

> Keeping such a business running is, in many jurisdictions, a crime.

[citation needed]




Keeping it running doesn't appear, in the UK, from the information you provide to be a crime unless it is done dishonestly to defraud creditors (fraudulent trading), and mere current inability to meet payments isn't enough. Lots of acts done with intent to defraud are criminal -- the fundamental wrong criminalized is fraud.

Mere trading while insolvent, without dishonesty and intent to defraud, appears to be an unlawful-but-not-criminal act that results in personal civil liability for company debts. "Unlawful" and "criminal" are not the same thing.




Consider applying for YC's Summer 2026 batch! Applications are open till May 4

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: