insolvent


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insolvent

adjective bankrupt, broke, defaulting, failed, impecunious, impoverished, in arrears, lacking funds, moneyless, out of funds, out of money, penniless, reduced, ruined, unable to pay
See also: bankrupt, destitute, impecunious, poor, unsound

INSOLVENT. This word has several meanings. It signifies a person whose estate is not sufficient to pay his debts. Civ. Code of Louisiana, art. 1980.. A person is also said to be insolvent, who is under a present inability to answer, in the ordinary course of business, the responsibility which his creditors may enforce, by recourse to legal measures, without reference to his estate proving sufficient to pay all his debts, when ultimately wound up. 3 Dowl. & Ryl. Rep. 218; 1 Maule & Selw. 338; 1 Campb. it. 492, n.; Sugd. Vend. 487, 488. It signifies the situation of a person who has done some notorious act to divest himself of all his property, as a general assignment, or an application for relief, under bankrupt or insolvent laws. 1 Peters' R. 195; 2 Wheat. R. 396; 7 Toull. n. 45; Domat, liv. 4, t. 5, n. 1 et 2; 2 Bell's Com. 162, 5th ed.
     2. When an insolvent delivers or offers to deliver up all his property for the benefit of his creditors, he is entitled to be discharged under the laws of the, several states from all liability to be arrested. Vide 2 Kent, Com. 321 Ingrah. on Insolv. 9; 9 Mass. R. 431; 16 Mass. R. 53.
     3. The reader will find the provisions made by the national legislature on this subject, by a reference to the following acts of congress, namely: Act of March 3, 1797, 1 Story, L. U. S. 465; Act of March 2, 1799; 1 Story, L. S. 630; Act of March 2, 1831, 4 Sharsw. Cont. of Story, L. U. S. 2236; Act of June 7, 1834, 4 Sharsw. Cont. of Story, L. U. S. 2358; Act of March 2, 1837, 4 Sharsw. Cont. of Story, L. U. S. 2536. See Bankrupt.

References in classic literature ?
He remained shut up in his room for a fortnight afterwards; and an attorney's clerk, who was going through the Insolvent Court, engrossed an address of condolence to him, which looked like a Lease, and which all the prisoners signed.
In short, he was the conventional cherub, after the supposititious shoot just mentioned, rather grey, with signs of care on his expression, and in decidedly insolvent circumstances.
The condemned felon has as good a yard for air and exercise in Newgate, as the insolvent debtor in the Marshalsea Prison.
Ogg's, and men who busied themselves with political questions were regarded with some suspicion, as dangerous characters; they were usually persons who had little or no business of their own to manage, or, if they had, were likely enough to become insolvent.
But insolvency practitioners warned that as many as 150,000 people could be declared insolvent during 2009, as the credit crunch prevents people from restructuring their debts, while rising unemploys ment makes it harder for people to keep up with their borrowings.
More than 26,000 people in the UK became insolvent in the last quarter, latest statistics reveal.
Advances made after a family member becomes insolvent are deemed to be gifts, because a reasonable expectation of repayment could not exist when the advance is made; see Hunt, TC Memo 1989-335.
Each scenario presents traps for the unwary Key among these is the risk that the selling insurance company will become insolvent and be placed into receivership.
The court ruled that because the corporation was allegedly insolvent at the time, the creditor validly alleged a claim for breach of fiduciary duty owed by the director directly to the creditor.
For a number of years, taxpayers, the IRS and the courts have disagreed about the proper treatment of S corporations that have cancellation-of-debt (COD) income and are insolvent.
The Financial Reconstruction Commission (FRC) will not necessarily declare insolvent those banks whose capital-adequacy ratio has momentarily dropped to zero percent, the FRC chief said Tuesday.
The meeting heard from receiver Rina Rohilla that the firm had been trading while insolvent.