Difference between revisions of "Insolvent"

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'''Insolvent''' is when the total [[debt]] of an entity is greater than all of its [[property]].  
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'''Insolvent''' is when the total [[debt]] of an entity is greater than all of its [[equity]] ([[property]], [[asset]]s and [[account receivable]]s).  
  
[[category:legal terms]]
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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]].
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==See also==
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* [[Bankruptcy]]
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* [[Conservatorship]]
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== External links ==
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*[http://dictionary.law.com/ Law Dictionary]
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*[http://research.lawyers.com/glossary/ Glossary of Legal Terms]
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[[Category:Accounting]]
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[[Category:Business]]
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[[Category:Economics terms]]
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[[Category: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.

See also

External links