What does Insolvent mean?

To be insolvent means an individual or a business has insufficient assets to cover their debts or they are unable meet financial obligations as they fall due.

Each country has its own insolvency law and proceedings and various cash flow, balance sheet, and legal action tests are used to determine and define insolvent.

For further information see the Wikipedia insolvency definition.

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Last modified March 23rd, 2016 by Team

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