Insolvency is a term used to describe businesses that lack the funds necessary to cover existing financial obligations. Insolvency is often cited as a reason for seeking bankruptcy protection or debt negotiation. Though it most often relates to businesses, insolvency can also apply to individuals.
If your business is facing financial trouble, you need the help of a legal professional. Contact the offices of Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, today at (239) 237-0675 for a free consultation.
Types of Business Insolvency
Many thousands of business owners are going through insolvency as a result of the difficult economic climate. Insolvency does not mean that your business has failed; it simply means your business needs help getting back on track. The following are the two most common forms of insolvency:
- Cash flow insolvency – When a business does not have enough liquid assets to pay its bills, it is experiencing cash flow insolvency.
- Balance sheet insolvency – This type of insolvency occurs when there is no way for a business to balance its expenses due to having negative assets.
Options in Insolvency
There are several methods that attorneys use to help clients deal with adverse financial situations. We can help your business get the breathing room it needs to move forward, whether this means seeking debt negotiation or filing for bankruptcy protection.
If insolvency is putting your business in jeopardy, it is important to discuss your situation with a legal professional. Contact the offices of Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, today at (239) 237-0675 to schedule a free consultation.