Insolvency
Many people confuse insolvency and bankruptcy; however, they indicate very different financial states. When an individual becomes insolvent, it means that they are no longer able to continue making payments owed because they lack the necessary funds to do so. Bankruptcy, on the other hand, is what many insolvent debtors turn to in order to resolve their debts.
If you have recently found yourself unable to make payments, you may be in danger of bankruptcy. Contact a West Palm Beach bankruptcy attorney of Eric N. Klein & Associates, P.A. to discuss the details of your finances. Call 561-353-2800 today to schedule a free consultation.
Types of Insolvency
By definition, insolvency means that an individual possesses more liabilities than assets. There are two ways in which this can happen.
- Cash Flow Insolvency: This occurs when an individual has less money coming in than they do going out.
- Balance Sheet Insolvency: This can only be observed on paper, but it indicates that the debtor has negative assets, meaning that they owe more than they possess.
Insolvency is a serious threat to financial security. In many cases, insolvency can lead to bankruptcy.
Contact Us
If you have determined that you are financially insolvent, you should speak with an experienced legal professional who can help you out of your financial crunch. The West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. understand how overwhelming dealing with debt can be. Contact us today at 561-353-2800 to get back on the path to financial stability.
