Many people who come to Hoyes Michalos have debt that is just simply beyond repayment. They end up insolvent and file bankruptcy to absolve their debts and get a fresh start. There are many ways to tackle debt before it gets out of hand.
If you are simply struggling with debt, there are options available to you that will settle your debt without filing bankruptcy. There are also tools that you can use to help you identify when your “get out of debt free” date will be. If that date isn’t as close as you’d like it to be, or the monthly payments simply aren’t realistic, it might be time to see if you’re insolvent.
Knowing the difference between debt problems and creeping insolvency is difficult to determine. Our team has put together this infographic to help you determine whether or not you’re insolvent.
There are two possible definitions for insolvency:
- the value of your total debts outweighs the value of your total assets
- you’re unable to pay your debts as they become due because of poor income or cash flow