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:
“The distinction between children and adults, while probably useful for some purposes, is at bottom a specious one, I feel. There are only individual egos, crazy for love.”
—Don Barthelme (19311989)
“You must get your living by loving. But as it is said of the merchants that ninety-seven in a hundred fail, so the life of men generally, tried by this standard, is a failure, and bankruptcy may be surely prophesied.”
—Henry David Thoreau (18171862)