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The term insolvency means the inability of one in paying his or debts in time when it was decided to be paid. There are two types of insolvency such as:

1. Cash flow insolvency – this is the insolvency in which one is unable to pay its debt on the exact date of due.
2. Balance sheet insolvency – this insolvency term is used when the liabilities becomes more than the assets.

It is not compulsory if a company is suffered from cash flow insolvency then it must also have balance sheet insolvency because company may have debts but it might be due for some reason such as liquid of cash but the balance sheet is not showing any kind of insolvency. And it may be happen that a company is balance sheet insolvent due to liabilities more than the assets but side way cash debt are being still paid on time due to presence of the liquid assets thus it is not a cash flow insolvent

Insolvency Practitioner – An insolvency practitioner is a person who has the licensed authority for solving the matter of insolvency. He may have a office according the insolvency act 1986. This person can deal with insolvency cases such as bankruptcy or liquidation. All insolvency cases are solved by the insolvency practitioners associations. The insolvency practitioner associations provide well qualified insolvency practitioner for the insolvency case. This association has the expert professionals which are expert in solving the case of insolvency.

These associations also have the business recovery specialists which helps you in recovering your business if it fails. These business recovery specialists are expert in solving business recover cases.

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