What is insolvency? What does it mean to be insolvent? And how does insolvency differ from bankruptcy?
If youve ever found yourself pondering these questions, then this article is for you. Well tell you everything you need to know about insolvency and the consequences it could have for you and your business.
What is insolvency?
To put it in the most basic terms, insolvency refers to a financial state in which an individual or a company can no longer pay their debts and other obligations on time.
It arises whenever your liabilities or debts exceed your assets and cash flow.
How does insolvency differ from bankruptcy?
Insolvency is commonly confused with bankruptcy. But there are signific…
Read the full article at: https://www.fool.co.uk/mywallethero/loans/learn/what-is-insolvency/