IDEAS home Printed from
   My bibliography  Save this article

Methods To Prevent The Insolvency Of Companies


  • HORJA, Ioana Monica
  • VANCEA, Smaranda


The insolvency of companies is a phenomenon more and more common in Romanian economy. A business is insolvent if it doesn’t have enough assets to cover its debts, or it is unable to pay its debts as and when they are due. If a company can anticipate the insolvency risk it can avoid insolvency. The aim and the objective of the paper is to highlight the main strategies and methods for preventing insolvency and also their importance for a company. The financial difficulty of a company doesn’t have a legal adequate definition, but the accounting information, the evaluation report or audit reports, the banks admonitions can offer important criterions for the appraisal of the venture and can create a reference point for the trigger action of the alertness. A hypothetical line of the companies difficulties would start from the admonitions of the difficulties, would continue with the eventual prevention procedures or measures and procedures of extra judiciary treatment of the financial crisis, and only if these procedures didn’t gave result, with the insolvency procedure. The insolvency procedure gave also a chance for a company, the reorganization procedure, but may also lead to bankruptcy. The methods for preventing insolvency can be applies also by profitable companies in order to prevent financial difficulties, and also by companies in difficulties, company which can pass the crises period applying these strategies and methods.

Suggested Citation

  • HORJA, Ioana Monica & VANCEA, Smaranda, 2012. "Methods To Prevent The Insolvency Of Companies," Academica Science Journal, Economica Series, Dimitrie Cantemir University, Faculty of Economical Science, vol. 1(1), pages 59-64, November.
  • Handle: RePEc:tig:journl:v:1:y:2012:i:1:p:59-64

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tig:journl:v:1:y:2012:i:1:p:59-64. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Oroian). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.