What’s the Difference Between Bankruptcy and Insolvency?
These two words, insolvency and bankruptcy, can be quite confusing if you’re not sure what they mean. However, they go together and are related. Below is a clear distinction of bankruptcy vs insolvency
- Someone is said to be “insolvent” when they owe more than $1,000 and can’t pay their debts according to how they are supposed to be paid.
- When someone is insolvent, they may choose to claim bankruptcy or file a Consumer Proposal.
- Sometimes bankruptcy is referred to as insolvency.
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If you are struggling to pay your debts
and aren’t sure if you need to file for bankruptcy, we will help you look at all of your options
. One of our Credit Counsellors will answer your questions and provide you with guidance and information so that you can make an informed decision.