Insolvency

Sometimes, the insufficiency of the entire property and assets of an individual to pay his debts — the general and popular meaning. In a more restricted sense, inability to pay debts as they become due in the ordinary course of business. The term is used in the latter sense when traders and merchants are said to be insolvent, also in bankrupt laws. With reference to persons not engaged in trade and commerce, the term may have a less restricted meaning,' Opposed, solvency^ q. v. In the sense of the Bankrupt Act, means that a party, whose business affairs are in question, is unable ' United States v. Guiteau, 10 F. E. 163, 166, 167-68, 182-83 (Jan. 85, 1882), Cox, J.; note and cases to same, pp.

189-208, by Dr, Wharton. " Connecticut Mut. Life Ins. Co. v. Lathrop, 111 U. S. 618-20 (1884), Harlan, J.; 1 Whart. & S. Med. J. § 237. s Toof i;.

Martin, 13 Wall. 47 (1871), Field, J. See to pay his debts as they become due in the ordinary course of his daily business.^ Insolvency is owing debts in excess of the value of one's tangible property.

Without debts there can be no insolvency

Poverty and insolvency are not synonymous terms within the meaning of a statute conferring the right to administer upon an estato.^ Insolvent.- 1, adj. Not possessing the means with which to pay debts in full; concerning one so involved. In the last sense " insolvency " is frequently used. Thus we have insolvent debtor, trader, criminal, circumstances; and insolvent or insolvency laws.

3, n.

A person who is not pecuniarily able to pay his debts as they fall due; also, a person whose property, if distributed pro rata among his creditors, would hot be sufficient to pay their claims in full. Insolvency or insolvent laws. Laws passed by the individual States for the distribution, among creditors, of the property of persons who are unable to pay their debts in the ordinary course of business. In strictness, "bankrupt" laws apply only to traders or merchants, and "insolvent" laws to all other persons. Insolvent laws 'are banlcrupt laws passed by the States. Bankrupt laws discharge absolutely; insolvent laws leave future acquisitions liable. State laws are suspended while a national law is in operation.

8 See Bankruptcy; Cause, 1 (3), Probable; Ciroum-