MNP’s accredited insolvency counsellors can assist you during these unprecedented times. Your free consultation with MNP can take place via phone or online from the comfort and safety of your home.
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What Does Insolvency Mean?

Insolvency is when an individual or company cannot commit to their financial obligations for paying debt to lenders on time. This usually occurs when a person’s debt exceeds the value of their assets. Insolvency is not the same as bankruptcy, but it is criteria for bankruptcy. Check out the difference between insolvency and bankruptcy.

  • How Do I Know if I’m Insolvent?

    In very simple terms, you are insolvent if your debts exceed your assets in value. To calculate this, make a list of every debt you owe including loans and credit cards. Add up these debts to get your total in liabilities. Then make a list of assets including savings accounts, stocks, property, and more—using their fair market value rather than what you paid for them. Compare these two values to see if you are insolvent.

  • What are Solutions for Insolvency?

    People often get the terms bankruptcy and insolvency mixed up. Insolvency is a financial condition, not a legal declaration like bankruptcy. However, if you are insolvent, there are other ways to take care of your debts before you consider declaring bankruptcy.

    You can first see if there is anything you can do in your current situation to get out of debt, such as going on a strict budget or getting an extra job for more income.

    If your situation is past your control, there are still other debt solutions that your Licensed Insolvency Trustee can recommend based on your unique situation. For instance, you may choose to negotiate paying a portion of your debt by making a consumer proposal—or you may be able to consolidate your debt into one monthly payment at a reduced interest rate, which will keep your credit score intact.

  • Getting Help When You Are Insolvent

    Even trying to determine if you're insolvent can be stressful—and it's not always clear what you should do to begin improving your personal finances. Start by arranging a free, confidential consultation at your local MNP LTD office to speak to a Licensed Insolvency Trustee and learn more about the options available to you.

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