What is insolvency?
Insolvency is a state of financial distress in which a person or business cannot pay off its debts. It often leads to insolvency proceedings, where the individual’s assets may get liquidated, and they get forced to file for bankruptcy. Other options are available, such as filing a consumer proposal. Still, the best course of action is to avoid insolvency altogether. When the country is in a recession, those struggling with their finances are more likely to end up in debt, but there are ways you can protect your assets and remain solvent.