@busyone wrote:What exactly constitutes insolvency?
Insolvent means you can't pay your current debt payments. It doesn't necessarily
mean having a negative net worth, It can mean just a cash flow crunch that makes
paying current bills in full impossible.
If a person or corp. is currently insolvent, but has a positive net worth, it's possible
in many cases to negotiate a change in payment schedule. That can ease the
cash flow crunch (insolvency). If a person has negative net worth along with
insolvency things are a lot more dire.
+
850 FICO8 since 2015, Thanks MyFICO - 5+ years since last HP