Difference between revisions of "Insolvent"
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==See also== | ==See also== | ||
| − | *[[Bankruptcy]] | + | * [[Bankruptcy]] |
| − | *[[Conservatorship]] | + | * [[Conservatorship]] |
== External links == | == External links == | ||
| − | |||
*[http://dictionary.law.com/ Law Dictionary] | *[http://dictionary.law.com/ Law Dictionary] | ||
*[http://research.lawyers.com/glossary/ Glossary of Legal Terms] | *[http://research.lawyers.com/glossary/ Glossary of Legal Terms] | ||
Latest revision as of 21:07, January 13, 2020
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.