Negative equity: related pages

Bankruptcy

A person who is insolvent (unable to pay their debts) can be declared bankrupt. This means their assets and income become, for a period, by a trustee who attempts to clear what debts they can.

Insolvent

Unable to pay debts, or having liabilities greater than assets.

Liquidation

The "winding up" of a company, so that it ceases to exist. Companies being liquidated may be insolvent, or merely ceasing operations.

Receivership

The running of a company, or management of particular assets, is handed over to a receiver appointed by creditors in order to recover debts.