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Difference between Bankruptcy & Insolvency
Bankruptcy, by definition is a word used more often for the individuals who have lost all their valuables, assets, property, etc. and are completely into debt. On the other hand, Insolvency is a word used often in the business or corporate sector for any business or company that has failed and is in debt. When the cash inflow of the company freezes and is not able to meet its required financial commitments to continue its proper functioning, the company is called to be suffering from insolvency.
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