What is insolvency? Back to list

Member SinceJul 08, 2021

Posts 607

Wilburn

Feb 09, 2022 a 09:19
A person or company that is insolvent has more liabilities than assets. He is unable to fulfill his obligations, such as paying debts on time (before maturity). An insolvent person or business entity cannot pay off its debts to all creditors.

Member SinceAug 09, 2021

Posts 399

Hightrade

Feb 10, 2022 a 10:47
Insolvency is a legally declared inability to repay debts. Generally, the only way to achieve insolvency is through bankruptcy. For an individual or business to be considered permanently insolvent, their liabilities will exceed their assets in worth. The legal process for declaring an individual or company insolvent can take years and is often very complicated depending on the type of financial situation the person or company finds themselves in.

Member SinceJul 12, 2021

Posts 343

meni78

Feb 16, 2022 a 07:29
Insolvency is a state where one is unable to repay what he owes. Thus one files for bankruptcy.

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