Section 123 of the Insolvency Act defines Insolvency as:
o Insufficient Assets to meet all debts
o Inability to pay debts as they fall due (e.g. being late with tax payments or exceeding credit terms)
o Unsatisfied CCJ in whole or in part
o Unpaid Statutory Demand >£750
Establishing and understanding the point of Insolvency for you and/or your business is crucial to ensure you can enter into an Insolvency process and to understand the point at which you must take action to avoid dire consequences (e.g. personal liability in a limited company)