Being insolvent means that a person or business cannot pay debts as they fall due, or that the amount owed is greater than the value of the assets owned.

For a company, this might mean being unable to pay suppliers, employees, rent, tax, loans or other regular liabilities. For an individual, it may mean being unable to manage personal debts or facing the risk of bankruptcy.

Insolvency does not always mean that everything is lost. In some cases, there may be options to restructure, negotiate with creditors, enter a formal arrangement, rescue part of the business, or manage the position in a more controlled way.

The earlier advice is taken, the more options may be available.