Insolvency: Difference between revisions

The statutory definition of [[insolvency]] in the UK — which only applies to UK persons, of course — appears in Section 123 of the [[Insolvency Act 1986]], and is set out in the panel, and includes [[cashflow insolvency]] (123(1)(e)) and [[balance sheet insolvency]] (Section 123(2)). Of these two, balance sheet insolvency deserves a bit more coverage:

also known as “[[technical insolvency]]” or “[[accounting insolvency]]”, “[[Balance sheet insolvency]]”, like [[cashflow insolvency]], is a variety of being “[[unable to pay its debts|unable to pay one’s debts]]”, an expression which in turn features in many definitions of “[[insolvency]]” or “[[bankruptcy]]”.