3 ms·
Doesn't the inability to pay even some of your debts, mean you're in default?
by nextparadigms 15y ago
Doesn't the inability to pay even some of your debts, mean you're in default?
- _delirium 15y agoIt depends on what you mean by "debts"; you're only in default from the finance industry's perspective if you fail to service bonds/loans/etc., not if you fail to make other payments you've promised. For example, if IBM stopped paying its employees' salaries, or stiffed its suppliers, but continued servicing its bonds, it wouldn't be in default. S&P is specifically rating the chance of a default on bonds.
- jonknee 15y agoIf I cancel lawn service and the housekeeper for the week so I have money to pay the mortgage, I am not in default.