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?
One Response to ““Technically Insolvent””
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September 22, 2007 at 11:52 am, Barton Goth GCO Bankruptcy Trustees said:
To be technically insolvent you must reside, carry on business, or have property in Canada, owe greater than $1000 to your creditors and
a) for any reason must be unable to meed your obligations as they become due; or
b) ceased paying normal obligations in normal course of buiness; or
c) the aggregate of your property at fair market value is not sufficent to pay your obligations.
In terms of the rest of your questions you should really sit down with a local trustee and discuss these directly. The answers may be quite involved and can change with specific aspects of your case.