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 Notice
Famous quotes containing the words distinction and/or bankruptcy:
“At sundown, leaving the river road awhile for shortness, we went by way of Enfield, where we stopped for the night. This, like most of the localities bearing names on this road, was a place to name which, in the midst of the unnamed and unincorporated wilderness, was to make a distinction without a difference, it seemed to me.”
—Henry David Thoreau (18171862)
“The heritage of the American Revolution is forgotten, and the American government, for better and for worse, has entered into the heritage of Europe as though it were its patrimonyunaware, alas, of the fact that Europes declining power was preceded and accompanied by political bankruptcy, the bankruptcy of the nation-state and its concept of sovereignty.”
—Hannah Arendt (19061975)