2 ms·
If you need to cut cable because you can’t afford some expenses is that not the definition of “unable to pay bills” the article mentions?
by scrivna 6y ago
If you need to cut cable because you can’t afford some expenses is that not the definition of “unable to pay bills” the article mentions?
- leetcrew 6y agoI would also be "unable to pay bills" if I struggled to heat my 10,000 sq ft mansion in the winter, but there's no particular reason anyone should care.
- dahfizz 6y agoThe question is whether the insolvency claim is valid. If an additional expense would require reshuffling your budget, but afterwards you can pay all your debt obligations, you are not insolvent.
- prennert 6y agoIf you can cut your bills so you can pay them, you don't become insolvent, because you maintain a positive cash flow. In contrast, if you cannot cut your costs anymore and your outgoings exceed your income, you will have a negative cash flow. You are still not insolvent, but you will eat into your savings and credit lines and eventually become insolvent if you cannot recover.