When a company’s liabilities exceed their assets and they are unable to repay all money owed to creditors (even if they were to sell off all assets), they are legally insolvent. The consequences
If your business is insolvent or experiencing financial difficulties, this doesn’t necessarily mean the end. Financial difficulties can be part and parcel of running a business, so if you are
It’s quite common for people to ask what business insolvency really means. The simple explanation is that a business is insolvent when they can no longer afford to pay their debts as they are due,