What is Insolvency?
Many people use the terms insolvency and bankruptcy interchangeably; however, they do not mean the same thing. Insolvency is when a person becomes unable to make payments on their debts because they do not have the necessary funds to do so .On the other hand, filing for bankruptcy is how many insolvent individuals resolve their debt.
If you or someone you know is having difficulties repaying their debts, you may want to consider filing for bankruptcy. To learn more about how bankruptcy can help, contact the New Orleans bankruptcy attorneys of Kervin & Young, LLC. Call 504-599-5906 today to schedule a free initial consultation.
Types of Insolvency
There are two circumstances which indicate that an individual is insolvent.
- Cash flow insolvency occurs when an individual is spending more than he or she is making
- Balance sheet insolvency is calculated by a financial advisor and indicates that a person owes more than he or she possesses. This is considered “negative assets.”
Whether you are insolvent or repeatedly delinquent on loan payments, you may want to consider filing for bankruptcy to resolve your debts.
Contact Us
Struggling to maintain financially stability can be frustrating and stressful. If you would like to learn about how you can consolidate your debts into one manageable monthly payment, contact the New Orleans bankruptcy lawyers of Kervin & Young, LLC. Our team of experts helps people just like you recover from seemingly insurmountable debts every day. Call us at 504-599-5906 to speak with an attorney today.