Sometimes a formal insolvency is unavoidable.

Insolvency is legally defined as:

A company is insolvent if it either does not have enough assets to cover its debts (i.e. value of assets is less than amount of liabilities), or if it is unable to pay its debts as they fall due.

An individual is insolvent if he or she is unable to discharge his or her debts as they fall due.

See our liquidations pages for details of the final option.