Insolvent

Insolvent is when the total debt of an entity is greater than all of its equity (property, assets and account receivables).

Sometimes an insolvent entity can avoid a forced liquidation and/or bankruptcy if it has demonstrated an ability to maintain a positive cash flow.

## See also[edit]

* Bankruptcy
* Conservatorship

## External links[edit]

* Law Dictionary
* Glossary of Legal Terms