Insolvency 〈AUTHENTIC〉

: A state of "negative net worth" where total debts are greater than the fair market value of all owned assets.

: For businesses, reaching the "zone of insolvency" may shift a director’s duties from shareholders to creditors to protect remaining value. insolvency

: Insolvency is a financial condition (the "state of being"), whereas bankruptcy is the formal legal process or court order triggered by that state. : A state of "negative net worth" where