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 periodicals archive ?
The SEC had said the group was 'insolvent' since 2003, which meant that the company had more liabilities than assets.
The Allahabad bench of the National Company Law Tribunal (NCLT) on August 9 classified Jaypee Infratech as insolvent on the petition filed by the IDBI Bank under Section 7 of Insolvency and Bankruptcy Code 2016.
Legally speaking, Law 16/2012, enacted on April 20, 2012, provided the 6th amendment to the Portuguese Code of Insolvency and Business Recovery (CIRE) and it aimed to clarify the regime applicable to compliance with tax liabilities by insolvent companies in Portugal, particularly after decision-making with regard to business closure, a case where all tax liabilities and revenue debts should be extinguished.
Despite the low personal insolvency rate, the number of people going insolvent edged up by 2.8% between July and September compared with the previous quarter, with 19,683 cases recorded.
In Middlesbrough 238 people were declared insolvent, while the total in Redcar and Cleveland was 324.
Although creditors are not owed fiduciary duties, Delaware courts grant creditors of an insolvent corporation standing to bring derivative lawsuits on behalf of the corporation to enforce the directors' and officers' fiduciary duties to the corporation.
As claims increased with the onset of the recession in 2008-2009, federal tax credit reductions began posing a problem for a large number of states in 2011, as by that time they had had insolvent accounts for two years.
The government proposals will stop suppliers of IT and other essential services from making increased charges or the payment of debts a condition ofsupplying their services to an insolvent business.
Pursuant to a much-criticised legal provision in Bulgaria, if a balance sheet insolvent debtor is declared judicially insolvent, this will invalidate by operation of law: (i) any performance of a financial obligation and (ii) any creation of a security interest over any asset of the insolvency estate, in each case, made after the debtor became balance sheet insolvent.
Swiss National Bank has said that it is not eager to help insolvent banks.
Some have tried to justify the need for a substantial, permanent bureau to be able to deal with the size and complexity of insolvent insurers today as opposed to 100 years ago.
Of them, 600 will come under the purview of the Al Faraj Relief Fund, an affiliate of the Ministry of Interior, with whom Merchant has entered into an understanding to repatriate 50 insolvent prisoners every month over the next year.