Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Insolvency » what is insolvency? and why?

what is insolvency? and why?

RELATED POSTS:

  1. Top 10 Most Used Insolvency Terms Our list, of the most used insolvency terms in England, Wales and Northern Ireland, should help you to get your...

  2. New report names Fife as The Kingdom of Insolvency A report published by Experian has shown that the Fife towns of Glenrothes and Kirkcaldy have the highest rates of...

  3. What happens when my debt management planner or Trust Deed and IVA Insolvency Practitioner goes bust? In recent months, the debt management program planners DCM have gone into liquidation, last year it was the turn of...

  4. Bankruptcy and Insolvency records nsw  Every company today is looking for a way of avoiding being bankrupt because this affects their services beyond their...

  5. Social Security disability on verge of insolvency? so would the goverment be happy if people with disabiltys just die – so they would have more money for...

Written by

Filed under: Insolvency · Tags:

One Response to "what is insolvency? and why?"

  1. champ_85 says:
    Insolvency is when a company does not have the money to cover its expenses and does not anticipate the situation to change for the better. It can happen for many reasons, but a good reason is that a company expands faster than it can financially cover. If a company expects double the business the next year, it purchases equipment, material, may move to a higher cost building. However, if the economy declines, it has incurred significant expenses that it will not be able to pay due to a bad business decision. The bank will call its loan, the vendors will demand payment and the landlord will foreclose on the building. The company collapses like a house of cards, and nobody will get their money back. This is a simple example of one of many ways a company misjudges its financial abilities and spends more than it can make. Hope this helps!

Leave a Reply

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player