A person or company that is insolvent has more liabilities than assets. He is unable to fulfill his obligations, such as paying debts on time (before maturity). An insolvent person or business entity cannot pay off its debts to all creditors.

Insolvency is a legally declared inability to repay debts. Generally, the only way to achieve insolvency is through bankruptcy. For an individual or business to be considered permanently insolvent, their liabilities will exceed their assets in worth. The legal process for declaring an individual or company insolvent can take years and is often very complicated depending on the type of financial situation the person or company finds themselves in.

Insolvency is a state where one is unable to repay what he owes. Thus one files for bankruptcy.

Insolvency is a financial state in which a person or business is unable to pay its debts. This can happen for a variety of reasons, such as poor financial management, unexpected expenses, or a downturn in the economy. When a person or business is insolvent, they may have to file for bankruptcy. Bankruptcy is a legal process that helps people and businesses deal with their debts. There are different types of bankruptcy, and the type that is right for a person or business will depend on their individual circumstances. Insolvency can have a serious impact on a person's or business's life. It can damage their credit score, make it difficult to borrow money, and even lead to the loss of assets. If you are concerned that you or your business may be insolvent, it is important to seek legal advice. A lawyer can help you understand your options and make the best decisions for your situation.