You are here: HomeLegal GuidesInsolvencyA small glossary for Insolvency

A small glossary for Insolvency

Here’s a quick rundown of some of the words you’ll come across when it comes to Insolvency. Some of these words are only ever used in legal documents and solicitor’s offices (some, quite frankly, sound a bit medical).

Liabilities

The state of being legally responsible for something.

Liquidation

The process of winding down a business.

Floating charge

A way for a company to borrow money.

Solvent

Means you have enough money to pay your debts.

Insolvent

Means you don't have enough money to pay your debts.

DISCLAIMER: This article should not be regarded as constituting legal advice in relation to particular circumstances. This article is merely a general comment on the relevant topic.

Published on 8th March 2013
(Last updated 28th March 2018)

This website uses 'cookies' to anonymously enhance your browsing experience, but does not store any personal information. By closing this message and continuing to use the website you are agreeing to their use. Please read our Privacy & Cookies Policy for more information.