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insolventadjective 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.