insolvent

Bankruptcy Law

Insolvency Versus Bankruptcy: What is the Difference?

Insolvency and bankruptcy are often confused. While both apply to a business struggling to pay its obligations, each has different processes and outcomes. What is Insolvency? Insolvency is considered a financial status. It means that a business cannot promptly pay its obligations. According to the Internal Revenue Service (IRS), a business is insolvent when the…

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