Difference between revisions of "Insolvent"
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Sometimes an insolvent entity can avoid a forced [[liquidation]] and/or [[bankruptcy]] if it has demonstrated an ability to maintain a positive [[cash flow]]. | Sometimes an insolvent entity can avoid a forced [[liquidation]] and/or [[bankruptcy]] if it has demonstrated an ability to maintain a positive [[cash flow]]. | ||
| − | ==See | + | ==See also== |
* [[Bankruptcy]] | * [[Bankruptcy]] | ||
* [[Conservatorship]] | * [[Conservatorship]] | ||
Revision as of 05:24, July 12, 2016
Insolvent is when the total debt of an entity is greater than all of its equity (property, assets and account receivables).
Sometimes an insolvent entity can avoid a forced liquidation and/or bankruptcy if it has demonstrated an ability to maintain a positive cash flow.