Unfortunately, nobody wants to be in a position whereby they are unable to pay their debts, hence the terminology of ‘being insolvent’ means being unable to pay your debts, as a person or company. We specialise in the two forms of insolvency: cash-flow insolvency and balance sheet insolvency.
Cash flow insolvency is when a person or company has enough assets to pay what is owed, but does not have the appropriate form of payment to hand. For example, a person may own a property or a valuable piece of machinery/hardware, but not have enough liquid assets or money to pay a debtor when it falls due.
Where as balance sheet insolvency occurs where the value of a persons or a company’s assets is less than the amount of its liabilities, taking into account both contingent and prospective liabilities.
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