What is insolvency?
Q: What is insolvency?
A: Insolvency refers to a situation where a person or an organization does not have enough money to pay all the people they owe money.
Q: How do different countries define insolvency?
A: Different countries have various definitions of exactly what insolvency means.
Q: What is cash flow insolvency?
A: Cash flow insolvency is a situation where a person cannot pay their debts as they fall due.
Q: What is balance sheet insolvency?
A: Balance sheet insolvency is a scenario where the total amount of a person's liabilities is larger than the total amount of their assets.
Q: What is the consequence of being insolvent?
A: People whom a person or a business owes money to may apply to court to put them into bankruptcy.
Q: Who can apply to court for bankruptcy?
A: People whom a person or organization owes money to can apply to court to put them into bankruptcy.
Q: Why do people apply to court to put an insolvent person into bankruptcy?
A: People apply to court to put an insolvent person into bankruptcy in order to try and recoup some of the owed money.
