Should Solvency Tests Give the Same Answer?

Tue Jul 28 08:45:07 EDT 2015
By Dr. David Tabak

Solvency is an important issue in many bankruptcy and related matters. Unfortunately for the sake of consistency, there is not a single definition of solvency, nor is there a single test for bankruptcy. This paper addresses two of the primary tests for bankruptcy, discussing when these tests should give the same or potentially different results. A case study is provided based on a bankruptcy case in which the author served as an expert witness.