Distinction From Insolvency and Bankruptcy
The term default should be distinguished from the terms insolvency and bankruptcy.
- "Default" essentially means a debtor has not paid a debt which he or she is required to have paid.
- "Insolvency" is a legal term meaning that a debtor is unable to pay his or her debts.
- "Bankruptcy" is a legal finding that imposes court supervision over the financial affairs of those who are insolvent or in default.
Read more about this topic: Default (finance)
Famous quotes containing the words distinction and/or bankruptcy:
“There appears to be but two grand master passions or movers in the human mind, namely, love and pride. And what constitutes the beauty or deformity of a man’s character is the choice he makes under which banner he determines to enlist himself. But there is a strong distinction between different degress in the same thing and a mixture of two contraries.”
—Sarah Fielding (1710–1768)
“Disappointment is a sort of bankruptcy—the bankruptcy of a soul that expends too much in hope and expectation.”
—Eric Hoffer (1902–1983)