September 21st, 2007 by Questions
What does the term `Technically insolvent` really mean? The simple answer goes like `when liabilities exceed assets`.
How do we value assets that are not readily convertible to cash? Like ownership of shares in a private corporation? How do we value liabilities whose cash value we don`t have a handle on? Like a lease agreement or a contract.
This situation applies to me. I should be filing for bankruptcy but then I made a series of transactions over the last 2 years when I was technically insolvent (if you take only the cash and publicly traded stocks and bonds in my portfolio).
How do I handle this?