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insolvent

Defined in 6 dictionaries — Case Law, U.S. Code, Cyclopedic (1922), Ballentine's (1916), Black's (1910), Kinney (1893)

Definitions from Case Law

From 265 U.S. 365 - Liberty Nat Bank of Roanoke Va v. Bear · 1924Most cited · 144 citing opinions

It applies only to liens obtained in legal proceedings against a person who was 'insolvent' when the lien was acquired. If the debtor was then solvent the lien is not invalidated although it was obtained within four months prior to the filing of the petition in bankruptcy. To invalidate the lien the person challenging it must show that the debtor was insolvent when it was obtained.

United States Code

11 U.S.C. § 101 — in this title (10 versions over time)

The term "insolvent" means—

(A) with reference to an entity other than a partnership and a municipality, financial condition such that the sum of such entity's debts is greater than all of such entity's property, at a fair valuation, exclusive of—

(i) property transferred, concealed, or removed with intent to hinder, delay, or defraud such entity's creditors; and

(ii) property that may be exempted from property of the estate under section 522 of this title;

(B) with reference to a partnership, financial condition such that the sum of such partnership's debts is greater than the aggregate of, at a fair valuation—

(i) all of such partnership's property, exclusive of property of the kind specified in subparagraph (A)(i) of this paragraph; and

(ii) the sum of the excess of the value of each general partner's nonpartnership property, exclusive of property of the kind specified in subparagraph (A) of this paragraph, over such partner's nonpartnership debts; and

(C) with reference to a municipality, financial condition such that the municipality is—

(i) generally not paying its debts as they become due unless such debts are the subject of a bona fide dispute; or

(ii) unable to pay its debts as they become due.

26 U.S.C. § 108 — for purposes of this section

For purposes of this section, the term “insolvent” means the excess of liabilities over the fair market value of assets. With respect to any discharge, whether or not the taxpayer is insolvent, and the amount by which the taxpayer is insolvent, shall be determined on the basis of the taxpayer's assets and liabilities immediately before the discharge.

26 U.S.C. § 58 — for purposes of this section

For purposes of this paragraph, the term “insolvent” means the excess of liabilities over the fair market value of assets.

Show all 3 definitions and how they changed over time

The Cyclopedic Law Dictionary

Walter A. Shumaker and George Foster Longsdorf; ed. James C. Cahill · 1922

One who is in a state of Insolvency {q. V.)

Ballentine's Law Dictionary

James A. Ballentine · 1916

The condition of one in a state of insolvency; one in such condition.

Black's Law Dictionary

Henry Campbell Black, M.A. · 1910

One who cannot or does not pay; one who is unable to pay his debts; one who is not solvent; one who has not means or property sufficient to pay his debts. See Insolvency.

Insolvent law. A term applied to a law, usually of one of the states, regulating the settlement of insolvent estates, and according a certain measure of relief to insolvent debtors. Co.ok v. Rogers, 31 Mich. 396; Adams v. Storey, 1 Fed. Cas. 141; Vanuxem v. Hazelhursts, 4 N. J. Law, 195, 7 Am. Dec. 582.

A Law Dictionary and Glossary

George C. Kinney · 1893

One who cannot or does not pay; one who is unable to pay his debts; strictly, a person, not engaged in trade, who is unable to pay his debts, v. Bankruptcy.