Insolvency vs. Default vs. Bankruptcy: Three Terms Defined, Explained and Compared in One Minute

A one minute video through which insolvency, default and bankruptcy have been defined, explained and compared.

Way too many people make the mistake of thinking that insolvency, default or bankruptcy are just three words which basically mean the same thing. That is definitely not the case.

As we're about to find out:

1) Insolvency is a state of being

2) A default is an event

3) A bankruptcy is a legal process

While there are definitely similarities between insolvency, default and bankruptcy, the terms are by no means interchangeable.

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[OneMinuteEconomics]

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[Ecstasymusic]

Insolvency is a state of being i e not having enough to pay any obligations.
bankruptcy is a legal process done at the time when a person defaults.

[OneMinuteEconomics]

If you liked this video, I think you'll love my personal finance book (Wealth Management 2.0) that has been written specifically for today's ultra-complex investment landscape and is available over at:

[djguy]

Brilliant video. See far to many of these made Overy complicated, you guys explained it in 2 minutes. Subscribed 👍🏻

[KAKAROT_]

Thanks comrade for the useful and well interpreted information, I needed this for my assignment. I appreciate the help 🙏

[ns]

Very clear & concise definition thanks

[poonnapap.]

Very succinct. Just what I need to know. Thanks

[DJdoodoo]

Thank you for the video. Very informative and easy to follow.

[dr.jones.]

Been tryna find the right word to describe me for so long and wallah'😃

[thomasucc]

Great video, can you compare this to retail bank

[impresal]

may I know what do you use to make those type of video cartoon character animations?

[behzad.tabari]

Fear of being insolvent makes you work for other people's dream, until you can save at least 6 to 9 months of your expenses so in case you could easily quit your job and don't fear of bankruptcy for starting your own business.

[princessmeganelsa]

Good learning helping tips! Why i pay off credit bill early the better avoid this!! 😳😳😳

[Jesusmedia]

Explanations is good.but the vedio is moving too fast