Insolvency

1.

Inability to pay financial obligations as they fall due.

2. UK law.

The inability of a company - on a balance of probabilities - to meet all of its existing, prospective and contingent liabilities, taking account of future costs and of future interest obligations.

In making this assessment, future income and future asset valuations are also taken into account.

See also

• Balance sheet insolvent
• Cash flow insolvent
• Chapter 11
• Company voluntary arrangement
• Corporate Insolvency and Governance Act
• Cost of financial distress
• Creditors
• Individual Voluntary Arrangement
• Insolvency practitioner
• Insolvency Service
• Scheme of arrangement
• London Approach
• Solvency
• Solvency II
• Statement of affairs
• Voluntary liquidation