What is Insolvency?
Insolvency is a state of financial distress in which companies can no longer fulfill financial obligations to creditors. Insolvency is typically caused when a company’s arrears exceed the company assets or if the company has fallen into financial hardship and cannot meet their financial duties to creditors.
The process of Insolvency is referred to as ‘Insolvency Proceedings’. This term encompasses any and all of the legal procedures within the Insolvency Process (Winding Up, Administration, Liquidation, etc.).