| There is often a confusion that implies sameness | | | | by developing a new financial strategy and diligently |
| between insolvency and bankruptcy. The words are | | | | employing it. Reevaluation of expenditures and asset |
| often used interchangeably when in reality they mean | | | | generation often leads to liberation. You must not be |
| different things. Although similar in nature, bankruptcy | | | | too proud to admit that you may need some help |
| and insolvency are not equal concepts. In the first | | | | getting through debt problems. If you are not openly |
| place, bankruptcy is normally a term reserved for | | | | communicating with your creditors, they will eventually |
| individuals while insolvency is applied to businesses. | | | | have no choice except to find you at fault. |
| Either way, the cashflow has reached a point where | | | | It is easy sometimes to continue waiting in silence, |
| liabilities are greater than assets. The individual or | | | | hoping to recover with just a little more time. The time |
| business is unable to meet financial obligations and can | | | | will pass quicker for you than for those that you are |
| no longer continue to function. Individual bankruptcy and | | | | indebted to. Step outside of your current debt situation. |
| business insolvency are both avoidable in almost every | | | | Look from the outside in to see that you are not your |
| single case. | | | | debt and your debt is not you. Most financial |
| Before beginning proceedings for either case, the | | | | indebtedness can be overcome in absence of |
| individuals in charge of decision making need to closely | | | | bankruptcy or insolvency. Seek advice and assistance. |
| examine the debt situation and explore options | | | | Communicate openly and honestly with your creditors. |
| available. There are normally at least a few. There are | | | | Don’t be any more specific than warranted, but be |
| also always agencies available, many times for free, | | | | honest. You can rise above this temporary state of |
| that are in place to assist with these circumstances. | | | | indebtedness. |
| Many times, bankruptcy and insolvency are avoidable | | | | |