Written By Melissa Cook
Jan 30, 2023
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Insolvency refers to the state of being unable to pay debts as they come due. It is a financial term that is often used to describe a company or individual that is facing financial difficulties and is unable to meet its financial obligations.

There are several different types of insolvency, including cash flow insolvency and balance sheet insolvency. 

Cash flow insolvency occurs when a company or individual is unable to meet its current financial obligations, such as paying bills or making loan payments, due to a lack of cash flow. Balance sheet insolvency, on the other hand, occurs when a company or individual’s liabilities exceed its assets.

In the case of a company, insolvency can have serious consequences. It can lead to the liquidation of the company’s assets, the laying off of employees, and the disruption of business operations. In some cases, it can also lead to bankruptcy.

Individuals can also experience insolvency. This can happen when someone is unable to pay their bills or make loan payments. This can have a negative impact on their credit score and make it difficult for them to obtain credit in the future.

Insolvency can be caused by a variety of factors, including economic downturns, poor financial management decisions, and unexpected expenses. In some cases, it can also be the result of fraud or embezzlement.

There are several options available to companies and individuals who are facing insolvency. 

One option is to seek out a loan or line of credit to help them meet their financial obligations. Another option is to negotiate with creditors to reach a debt settlement or restructuring plan. In some cases, companies may also choose to seek out a merger or acquisition in order to stay afloat.

Individuals can also seek out debt counseling or credit counseling services to help them manage their debts and develop a plan to get back on track financially.

It is important to note that while insolvency can be a difficult and stressful situation, it is not the end of the road. With the right plan and the right resources, companies and individuals can work to regain financial stability and move forward.

However, it is important to address the issue of insolvency as soon as possible. The longer it is left unresolved, the more difficult it can be to recover financially. It is also important to seek professional advice and guidance, whether it be from an accountant, lawyer or Americor Debt Specialist, as they can provide valuable insight and resources to help navigate through the process.


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About Americor

Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

18200 Von Karman Ave, 6th Floor Irvine, CA 92612
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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

Americor Funding, LLC (18200 Von Karman Ave, 6th Floor Irvine, CA 92612) is fully accredited by the Better Business Bureau (BBB), the American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). CA Department of Financial Protection and Innovation (DFPI) License # 603K913.

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