What is the definition of Insolvent?
- Posted on November 19, 2019
- Financial Terms
- By admin admin
A company or government is deemed to be insolvent when it cannot pay its debts (i.e. is due to default). It is insolvency if it is due to not actually having enough money to pay off the debt, whereas simply not being able to access the money (which is a problem in itself) is a lack of liquidity.
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