Difference in bankruptcy and insolvency?

What is the difference between bankruptcy and insolvency?

Though you may not realize it (since these two terms are used so interchangeably), bankruptcy and insolvency mean two separate things. Insolvency is a term used to describe people and entities that have failed to pay off their debts. You are insolvent if you cannot pay back your debts. Bankruptcy, on the other hand, is a legal process that assists debtors in getting out of their states of insolvency.

If you would like to learn more about bankruptcy and its benefits, contact Tacoma, Seattle, Kirkland, Bellevue, Bremerton, Everett bankruptcy lawyer Ryan Nykamp today at 425-289-9873.