Edge of Bankruptcy

Submit Enquiry

Name

Email

Phone:

Enquiry Type

Comments

Enter Code:
Captcha

Tips to Help Understand Insolvency Vs. Bankruptcy

There is often a confusion that implies sameness between insolvency and bankruptcy. The words are often used interchangeably when in reality they mean different things. Although similar in nature, bankruptcy and insolvency are not equal concepts. In the first place, bankruptcy is normally a term reserved for individuals while insolvency is applied to businesses. Either way, the cashflow has reached a point where liabilities are greater than assets. The individual or business is unable to meet financial obligations and can no longer continue to function. Individual bankruptcy and business insolvency are both avoidable in almost every single case.

Before beginning proceedings for either case, the individuals in charge of decision making need to closely examine the debt situation and explore options available. There are normally at least a few. There are also always agencies available, many times for free, that are in place to assist with these circumstances. Many times, bankruptcy and insolvency are avoidable by developing a new financial strategy and diligently employing it. Reevaluation of expenditures and asset generation often leads to liberation. You must not be too proud to admit that you may need some help getting through debt problems. If you are not openly communicating with your creditors, they will eventually have no choice except to find you at fault.

It is easy sometimes to continue waiting in silence, hoping to recover with just a little more time. The time will pass quicker for you than for those that you are indebted to. Step outside of your current debt situation. Look from the outside in to see that you are not your debt and your debt is not you. Most financial indebtedness can be overcome in absence of bankruptcy or insolvency. Seek advice and assistance. Communicate openly and honestly with your creditors. Don’t be any more specific than warranted, but be honest. You can rise above this temporary state of indebtedness.

Written by Ingrid Thomason. Find the latest information on Insolvency as well as BankruptcyThis article is free for republishing
Source: http://www.articlealley.com/article_197698_19.html


Don't Miss...
  1. Insolvency Practitioners in the UK: How to Not Get to Know Them
  2. Understanding Insolvency and Liquidation
  3. Taking Care of Insolvency in Scotland
  4. Tips for Surviving Financial Insolvency
  5. Potential Implications of Insolvency for Directors
  6. Liberation From Multiple Loans
  7. Smart Tips on Liquidation and Insolvency
  8. Insolvency And Liquidation Information
  9. Liberation From Multiple Loans
  10. Bankruptcy Advice: How to Resolve Insolvency
  11. Insolvency Services in the United Kingdom
  12. Insolvency London, UK: System in Peril
  13. With the Coming Medicare Insolvency You Will Need a Health Savings Account
  14. IVAs - Possibly Your Best Recourse to Bankruptcy
  15. Home Refinance Loans and Debt Help Solutions
  16. Bankruptcy Mortgages - Get a Mortgage after Bankruptcy Discharge
  17. Is Bankruptcy a Better Solution to Become Debt Free?
  18. Bankruptcy Mortgage Information For Homeowners
  19. IVA (Individual Voluntary Arrangements) - Alternative To Bankruptcy!
  20. IVA (Individual Voluntary Arrangements) - Alternative To Bankruptcy!
  21. Loans Solving Dual Problems
  22. Improve Your Credit Score With A Low Interest Debt Consolidation Loan
  23. Bankruptcy Mortgage Advice
  24. Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy
  25. First Steps to Take After You've Filed Bankruptcy
  26. Loans for Adverse Credit can take the Onus of Your Weird Financial Condition
  27. Short Term Cash Loans: Cash At The Wink Of An Eye
  28. Improve You Credit Scores: The Easy Way
  29. Credit Card Debt Consolidation Loans
  30. How to get Your Way Around Home Mortgage Rates
Latest...
  1. Insolvency Practitioners in the UK: How to Not Get to Know Them
  2. Bankruptcy Advice: How to Resolve Insolvency
  3. Taking Care of Insolvency in Scotland
  4. Insolvency London, UK: System in Peril
  5. Insolvency Services in the United Kingdom
  6. With the Coming Medicare Insolvency You Will Need a Health Savings Account
  7. Potential Implications of Insolvency for Directors
  8. Smart Tips on Liquidation and Insolvency
  9. Some Great Facts on Insolvency
  10. Tips for Surviving Financial Insolvency

© Edge of Bankruptcy 2008. All Rights Reserved