There is often a confusion that implies sameness between insolvency andbankruptcy.
The words are often used interchangeably when in realitythey mean different things.
Although similar in nature, bankruptcy andinsolvency are not equal concepts.
In the first place, bankruptcy is normally a term reserved forindividuals while insolvency is applied to businesses.
Either way, the cashflowhas reached a point where liabilities are greater than assets.
Theindividual or business is unable to meet financial obligations and can no longer continue to function.
Individual bankruptcy and business insolvency are both avoidable inalmost every single case.
Before beginning proceedings for either case,the individuals in charge of decision making need to closely examine thedebt situation and explore options available.
There are normally atleast a few.
There are also always agencies available, many times for free, that arein place to assist with these circumstances.
Many times, bankruptcyand insolvency are avoidable by developing a new financial strategy anddiligently employing it.
Reevaluation of expenditures and assetgeneration often leads to liberation.
You must not be too proud to admit that you may need some help gettingthrough debt problems.
If you are not openly communicating with yourcreditors, they will eventually have no choice except to find you atfault.
It is easy sometimes to continue waiting in silence, hoping torecover with just a little more time.
The time will pass quicker for youthan for those that you are indebted to.
Step outside of your current debt situation.
Look from the outside into see that you are not your debt and your debt is not you.
Mostfinancial indebtedness can be overcome in absence of bankruptcy or insolvency.
Seek advice and assistance.
Communicate openly and honestly with yourcreditors.
Don't be any more specific than warranted, but be honest.
You can rise above this temporary state of indebtedness.