Legal Definition and Related Resources of Insolvency
Meaning of Insolvency
The state of a person who is unable, from any cause, to pay his debts. Two tests of insolvency prevail, their application generally being governed by the purpose for which the fact of insolvency is ascertained, though there is some confusion in the cases in this respect. Generally, for the purpose of enabling the debtor or his creditors to take advantage of insolvent acts, one is insolvent who is unable to meet his obligations as they accrue in due course of trade, and is unable to proceed in business without making some arrangement with his creditors, without regard to the ultimate sufficiency of his assets in liquidation. 112 Pa. St. 294; 98 Iowa, 321; 86 Me. 246; 3 Gray (Mass.) 600; 116 Mo. 226. Within the rule relating to conveyances by insolvent persons, it is generally held that one is insolvent whose obligation could not be collected by legal means out of his property. 43 N. Y. 75; 31 Mo. 73. If one has means from which payment could be enforced, he is not insolvent, even though he is in embarrassed circumstances, and unable to make present payment (136 N. Y. 104; 52 Mo. App. 282), or has even been compelled to suspend business (63 Hun[N.Y.] 632). Property so situated that it cannot be reached by creditors is not to be considered in determining, the issue of solvency (g. v.). Distinction between insolvency and bankruptcy, see Bankruptcy.
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| Resource | Description |
|---|---|
| Insolvency in the Dictionary | Insolvency in our legal dictionaries | Browse the Legal Thesaurus | Find synonyms and related words of Insolvency |
| Legal Maxims | Maxims are established principles that jurists use as interpretive tools, invoked more frequently in international law |
| Legal Answers (Q&A) | A community-driven knowledge creation process, of enduring value to a broad audience |
| Related topics | Insolvency in the World Encyclopedia of Law |
Notice
This definition of Insolvency is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.
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| https://legaldictionary.lawin.org/insolvency/ | The URI of Insolvency (more about URIs) |
See also
The inability to pay debts as they mature. The word is used… (Read more)
Insolvency Definition (in the Accounting Vocabulary)
The New York State Society of Certified Public Accountants offers the following definition of Insolvency in a way that is easy for anybody to understand: Inability to pay DEBTS when due.
Concept of Insolvency in the context of Real Property
A short definition of Insolvency: Generally applied to a person, corporation, bank, etc., when there is an inability to pay debts as they become due or within a reasonable time thereafter.
Concept of Insolvency in the context of Real Property
A short definition of Insolvency: Generally applied to a person, corporation, bank, etc., when there is an inability to pay debts as they become due or within a reasonable time thereafter.
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