What is insolvency?

  • (noun): The lack of financial resources.


Insolvency is the inability of a debtor to pay their debt. Cash flow insolvency involves a lack of liquidity to pay debts as they fall due. Balance sheet insolvency involves having negative net assets—where liabilities exceed assets. Insolvency is not a synonym for bankruptcy, which is a determination of insolvency made by a court of law with resulting legal orders intended to resolve the insolvency.

Read more about Insolvency.

Some articles on insolvency:

List Of Tribunals In The United Kingdom - Finance and Commerce - Insolvency Practitioners Tribunal
... Thre Insolvency Practitioners Tribunal hears referrals in respect of the refusal to grant, or the intention to withdraw, a license to act as an ...
Steven A. Gibson - Lawsuits - Insolvency
... On September 8, 2011, the MediaNews Group, which is the publisher of a number of newspapers including the Denver Post, announced it was terminating its deal with Righthaven at the end of the month, and called it a "dumb idea" ... The new CEO of the company, John Paton, said he would not have entered into such a deal, had he been CEO at the time of the decision ...
Insolvency Law in Individual Countries - Switzerland
... Under Swiss law, insolvency or foreclosure may lead to the seizure and auctioning off of assets (generally in the case of private individuals) or to ...
Corporate Rescue And Insolvency Journal - Features
... Features in this section offer practical advice into restructuring and insolvency problems together with analysis of some of the issues that can arise ... summary of major developments in the restructuring and insolvency sector Sector Focus section providing views and opinions on insolvency and restructuring topics from ...