Here’s a quick rundown of some of the words you’ll come across when it comes to Insolvency. Some of these words are only ever used in legal documents and solicitor’s offices (some, quite frankly, sound a bit medical).
The state of being legally responsible for something.
The process of winding down a business.
A way for a company to borrow money.
Means you have enough money to pay your debts.
Means you don’t have enough money to pay your debts.
DISCLAIMER: This article should not be regarded as constituting legal advice in relation to particular circumstances. This article is merely a general comment on the relevant topic.