Insolvency occurs when an individual owes more money than they possess, making it impossible for them to pay their debts on time or in the usual manner.
There is an error.
Insolvency refers to a situation where an individual or business is unable to pay their debts as they become due.
The consequences of being insolvent can include legal action by creditors, bankruptcy, and damage to credit scores.
Yes, an insolvent person can file for bankruptcy as a way to address their debts and financial situation.
Insolvency refers to a financial state where an individual or business is unable to pay their debts, while bankruptcy is a legal process that can be used to address insolvency.
You can determine if you are insolvent by calculating your liabilities and comparing them to your assets. If your liabilities exceed your assets, you may be insolvent.
Yes, an insolvent person can still be sued by creditors for outstanding debts.
If you are insolvent, your assets may be used to pay off your debts to creditors.
Yes, you can negotiate with creditors if you are insolvent to try to come up with a payment plan or settlement agreement.
Insolvency can last for as long as an individual or business is unable to pay their debts.
It may be difficult to get credit if you are insolvent, as lenders may view you as a high-risk borrower.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/insolvent/
- Modern Language Association (MLA):Insolvent. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/insolvent/.
- Chicago Manual of Style (CMS):Insolvent. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/insolvent/ (accessed: May 09 2024).
- American Psychological Association (APA):Insolvent. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/insolvent/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts