Insolvency occurs when your debt exceeds your assets/income or unforeseen circumstances result in your inability to meet the contractual obligations you have with your Credit Providers. Once this occurs various legal solutions exist to either write this debt off or to extend terms and lower interest rates through negotiations with your Credit Providers.
Insolvency is not the same as bankruptcy, but it is one of the criteria for bankruptcy. You can also apply for Debt Consolidation, Bond Consolidation or Debt Review before considering bankruptcy or sequestration.
Trying to determine if you're insolvent can be stressful and it's not always clear what should be done to improve finances. Start by arranging a free, no obligation consultation to determine what options are available to you.
To calculate if you are currently insolvent, make a list of all of your current outstanding debt. Now make a list of assets including savings and investment accounts, property, tools of the trade etc. Indicate their current market value and not what you actually paid for these assets. i.e. Property might have increased in value, tools of the trade might have decreased in value from the purchase price. Compare these two values to see if you are insolvent.
We suggest that you first take a careful look at your budget to see if there is a way to cut costs or think about ways of creating additional income to help get out of debt.
If your financial situation is past your control, there are still other debt solutions that Negociate Credit Solutions can suggest for your unique situation.
Want to know more? Let us conduct a free, no obligation Debt Assessment to determine what Debt Solutions will best work for your current situation. You will receive a copy of your credit report and a detailed assessment of how the process works. This is our pre-qualification process.
There are no upfront costs or charges to conduct this Debt Assessment and so you have nothing to lose by making an informed inquiry about the best way forward.