Though you may not realize it (since these two terms are used so interchangeably), bankruptcy and insolvency actually mean two different things. Insolvency is a word used to describe people and entities that have failed to pay off their debts. You are insolvent if you are cannot pay off your debts. Bankruptcy, on the other hand, is a legal process that assists debtors in climbing out of their states of insolvency.
If you would like to learn more about bankruptcy and its benefits, contact Birmingham bankruptcy lawyer Paula Greenway today at [phone-number].