Distress
Insolvency & Runway Test
The two questions a court and a lender both ask: can you pay debts as they fall due (the cash flow test), and do your assets exceed your liabilities (the balance sheet test)? Failing either one changes who your duties run to.
Inputs
- Cash on hand
- Other assets at realistic value
- Total liabilities
- Net cash burn per week
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.