Insolvency
Legal & insolvencyA financial state where you cannot pay your debts as they fall due.
Overview
Insolvency can lead to formal solutions such as bankruptcy, IVA, or DRO.
It has a significant impact on credit profiles and future borrowing.
Why it matters
- It can severely limit access to credit for years.
- It may affect housing and employment in some cases.
- It should be handled with professional advice.
FAQs
Is insolvency the same as bankruptcy?
No. Bankruptcy is one form of insolvency, but there are others such as IVAs.
Does insolvency show on my credit file?
Yes. It is a major entry on your credit report.
Related terms
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