What is insolvency?
A company that finds itself unable to meet its current liabilities with its available assets is declared to be insolvent. The debtor’s declaration of insolvency makes it possible to initiate receivership or judicial liquidation proceedings.
What situations are covered by a declaration of insolvency?
Insolvency is the legal status of a legal entity or natural person that is unable to repay its debts as they fall due using its cash resources.
