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  1. #1
    Join Date
    Jul 2008
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    18

    Default Delinquency and Insolvency

    Dear all,

    May I know is there any difference between delinquency and insolvency? Sometimes, there is a need to declare whether the person has ever been in a insolvency state or not.
    However, if someone ever delinquent before, is he considered being insolvency before?
    As if we check the definition from the dictionary, it is very similar. Thus, I would like to ask expert here whether it is the same or not.
    Thanks.

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
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    5,252

    Default Re: Delinquency and Insolvency

    Quote Quoting timidguy
    View Post
    Dear all,

    May I know is there any difference between delinquency and insolvency? Sometimes, there is a need to declare whether the person has ever been in a insolvency state or not.
    However, if someone ever delinquent before, is he considered being insolvency before?
    As if we check the definition from the dictionary, it is very similar. Thus, I would like to ask expert here whether it is the same or not.
    Thanks.
    Delinquency means for example that you are past due/late on paying your debts. You may not necessarily be insolvent just because you are delinquent on your debts. Some people may just pay late even though they have the money to pay on time.

    Insolvency means for example that you don't have the income to pay your debts/expenses. It can be a reason you are delinquent. Your income/assets are much less than your expenses/debts.

  3. #3
    Join Date
    Jul 2008
    Posts
    18

    Default Re: Delinquency and Insolvency

    Thanks Betty3 for the information. So, can it be said that delinquency and insolvency is entirely different. Means that someone who is delinquent doestn't mean that he or she is insolvent, right?
    Therefore, when someone who ever delinquent do not need to declare that he or she is ever insolvency since the person isn't. Can it be said in this way?
    Thanks again.

  4. #4
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Delinquency and Insolvency

    I agree that you can be delinquent on a debt (pay late/owe a payment(s)) but that doesn't mean you are definitely insolvent (don't have the money to pay).

    You can be insolvent when you are delinquent on a debt but you also might not be.

  5. #5
    Join Date
    Jul 2008
    Posts
    18

    Default Re: Delinquency and Insolvency

    Thanks again for the information.

  6. #6
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Delinquency and Insolvency

    You're welcome.

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