I

Insolvent

The term covers a situation when the debtor is incapable to pay his debts, debtor might be either a person or a company. It might also refer to a situation when the debtor has an excess of liabilities over assets. This situation might occur if a person has too many loans to repay, and so insolvency might lead to signing an individual voluntary arrangement. People who already signed an individual voluntary arrangement should be careful and make their payments in time, because insolvency during an IVA might have serious repercussions. People or companies who cannot pay their debts become insolvent and in case of companies, most of them are liquidated.