For an individual, making reasonable purchases and avoiding payment plans that they can only barely afford will help to stay out of insolvency. Financial planning and forecasting are essential for the individual to stay out of insolvency. For companies, good management of business finances will help to keep on top of insolvency. Updating one’s accounting software, outsourcing certain responsibilities, and planning ahead are all important aspects of finance management for businesses. Finding oneself in the insolvency or one’s enterprise becoming insolvent is not the end in either case. Liquidating assets can provide fast cash to pay off creditors, while restructuring of debts can alter the financial agreement for both parties to better suit the insolvent entity. Taking new loans to pay off overdue ones can partially solve the problem, however, confidence in one’s future financial situation to pay off new debts is necessary. Otherwise, borrowing will only exacerbate the situation.