When your total debt exceeds the value of your assets, you are deemed to be insolvent. Insolvency is a term used to describe a company or person's financial state - solvent vs insolvent.
Bankruptcy - Bankrupt
When an individual is formally declared to be insolvent by a High Court upon application.
Voluntary Surrender
The process where an individual launches an application on a voluntary basis to the High Court in order to have themselves declared bankrupt.
Sequestration
The process where a creditor launches an application to the High Court in order to have a debtor declared bankrupt.
Liquidation
The process where a close corporation or company is declared bankrupt by way of special resolution or order of court.
