An entity or a person is said to be insolvent they are not in a position to honor its financial obligations towards its creditors. Poor management of the business, increased expense, and reduced cash flow could lead to insolvency and the insolvent company is charged in order to pay off the debts owed and the company may be put to liquidation including the sale of assets. Fortunately, resolution approaches are available which includes restructuring of debt which allows the stressed company to pay off its debt over an extended period of time and on modified terms. A borrower can even negotiate with lenders on debt recovery and settlement agreements insolvency Services.
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