Skip to main content

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 might choose to claim bankruptcy.
  • Sometimes bankruptcy is referred to as insolvency.

Get Help with Insolvency Issues & Bankruptcy Information

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.

Contact Us for More Information About Bankruptcy vs Insolvency - Free Credit Counselling Appointments

If you are struggling to pay your debts and aren’t sure if you need to file for bankruptcy, get help determining your options.  We can also go into more detail about bankruptcy definitions. One of our Credit Counsellors will answer your questions and provide you with guidance and information so that you can make an informed decision. Contact us today by phone at 1-888-527-8999, by email or chat with us online now.

If you would like a bankruptcy definition added to this section please email us.