Find a Insolvency Law Lawyer in Mississauga
Insolvency means the inability to pay one's debts as they fall due. Usually used in Business terms, insolvency refers to the inability for a company to pay off its debts.
Business insolvency is defined in two different ways:
- Cash flow insolvency
- Unable to pay debts as they fall due.
- Balance sheet insolvency
- Having negative net assets – in other words, liabilities exceed assets.
A business may be 'cash flow insolvent' but 'balance sheet solvent' if it holds illiquid assets, particularly against short term debt that it cannot immediately realise if called upon to do so. Conversely, a business can have negative net assets showing on its balance sheet but still be cash flow solvent if ongoing revenue is able to meet debt obligations, and thus avoid default – for instance, if it holds long term debt. Many large companies operate permanently in this state.
Insolvency is not a synonym for bankruptcy, which is a determination of insolvency made by a court of law with resulting legal orders intended to resolve the insolvency. (Insolvency Law. In Wikipedia, The Free Encyclopedia.)
All verified listings have been vetted by TorontoLawyers.ca as to their accuracy. To make it easy to contact the required lawyer you may either use the phone number shown or click on the Email Lawyer link to use our secure contact form.
No Lawyers Match Your Search.
< Prev Next >
Unverified listings are included on Toronto Lawyers.ca for completeness, but have not been vetted by our staff. If you would like to become a verified member of Toronto Lawyers.ca please use the verify button beside your name or Contact Us directly.
No Lawyers Matched Your Search.