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Insolvency vs Liquidation - What's the difference?

insolvency | liquidation |

As nouns the difference between insolvency and liquidation

is that insolvency is the condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business; as, a merchant's insolvency while liquidation is the act of exchange of an asset of lesser liquidity with a more liquid one, such as cash.

insolvency

English

Noun

(wikipedia insolvency) (insolvencies)
  • The condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business; as, a merchant's insolvency.
  • Insufficiency to discharge all debts of the owner; as, the insolvency of an estate.
  • The condition of having more debts than assets.

    • Antonyms

    * solvency

    liquidation

    English

    Noun

    (en noun) (wikipedia liquidation)
  • The act of exchange of an asset of lesser liquidity with a more liquid one, such as cash.
  • The selling of the assets of a business as part of the process of dissolving the business.
    • The store is having a liquidation sale, everything must go as they go out of business.

    Related terms

    * liquid * liquidate * liquidator * liquidity * liquidizer * liquor