{"id":5347,"date":"2019-11-21T16:01:29","date_gmt":"2019-11-21T16:01:29","guid":{"rendered":"https:\/\/www.bluescreen.pt\/?p=5347"},"modified":"2023-01-13T17:13:04","modified_gmt":"2023-01-13T17:13:04","slug":"debt-management-and-insolvency-how-to-manage-cases-efficiently","status":"publish","type":"post","link":"https:\/\/bluescreen.pt\/bsstage\/debt-management-and-insolvency-how-to-manage-cases-efficiently\/","title":{"rendered":"Debt Management and Insolvency: How to Manage Cases Efficiently","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
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The term may be, somehow, scary\u2026 but in the economic world we live in, is a fact people must deal with. We are talking about debt management, credit claim, insolvency and all that comes with it.<\/p>\n

\u00a0<\/strong>What is insolvency?<\/strong><\/span><\/h3>\n

This is a term used when an individual or organization can no longer meet its financial obligations to its lenders, and debts became bigger and bigger as time goes by.<\/p>\n

Before an insolvent company or person gets involved in insolvency proceedings, there are some informal arrangements with creditors that tend to set up alternative payment arrangements.<\/p>\n

If there is no way you can pay your bills, the path is to become insolvent. By this time, some legal actions will be taken against the insolvent entity to get money and pay the creditors; in this case, some assets may be liquidated or accounts may be secured by banks.<\/p>\n

To better accomplish their functions, insolvency practitioners must work with good insolvency case management software<\/a><\/span> that will help them offering the best service possible to their clients.<\/span><\/h2>\n

There is always the possibility to restructure debt management into more manageable installments.<\/p>\n

Insolvent or bankrupt?<\/strong><\/span><\/h3>\n

There is a difference between insolvency and bankruptcy and a person or corporation can be insolvent without being bankrupt. But the other way around in not valid.<\/p>\n

Insolvency is a state of economic distress, whereas bankruptcy is a court order that decides how an insolvent debtor will deal with unpaid bills. Bankruptcy can severely damage a debtor\u2019s credit rating and its ability to borrow money for many years.<\/p>\n

Insolvency can lead to bankruptcy if the insolvent party is unable to successfully address its financial condition.<\/p>\n

Personal vs Business insolvency<\/strong><\/span><\/h3>\n

The term itself is the same whether we are talking about personal insolvency or a business one. In practice, insolvency is also the situation where an entity cannot raise enough cash to meet its obligations or to pay debts as they become due for payment or the debts of a person exceed their assets.<\/p>\n

Individuals and businesses can become insolvent because of a vast number of reasons, including:<\/p>\n