Is insolvent a noun?
Is insolvent a noun?
The condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business. Insufficiency to discharge all debts of the owner.
What is insolvency clause?
Introduction. Long term contracts frequently contain clauses which either terminate the contract automatically or entitle a party to terminate the contract in the event of the other party becoming insolvent; so-called ‘ipso facto’ clauses. Ipso facto clauses are generally considered valid under English law.
What do you mean insolvent?
Insolvency is a type of financial distress, meaning the financial state in which a person or entity is no longer able to pay the bills or other obligations. The IRS states that a person is insolvent when the total liabilities exceed total assets.
What is insolvent example?
In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be insolvent. For example, a person may own a large house and a valuable car, but not have enough liquid assets to pay a debt when it falls due.
Does insolvency frustrate a contract?
You should be aware that absent a specific contractual right, insolvency is not a breach of contract under English law. You cannot therefore simply rely on a right to terminate for default or breach – express wording dealing with insolvency is required.
Can you terminate a contract for insolvency?
A common term in any written contract is the ability to terminate the contract if the other party is insolvent. These are known as ‘ipso facto’ clauses (meaning by the fact or act itself). becoming subject to bankruptcy, liquidation or winding up procedures or otherwise becoming insolvent; or.
Who is called insolvent person in one sentence?
Whose capital A/c shows debit balance and who is not in a position to meet his capital deficiency even from his private property is called an insolvent person.
Can individual file insolvency?
An individual can file an insolvency petition if he/she is unable to pay his/her debts and needs protection from creditors. Filing of insolvency is governed by the Provisional Insolvency Act of 1920 and in this article, we look at the procedure for filing insolvency petition in India.
What are the clauses in the Insolvency Act?
The Trust shall not take any action in furtherance of, or indicating the consent to, approval of, or acquiescence in any of the acts set forth above. The Trust shall not admit in writing its inability to pay its debts. Insolvency.
What is the meaning of the word insolvency?
1 : the fact or state of being insolvent — compare bankruptcy. 2 : insufficiency (as of an estate) to discharge all enforceable debts. Note: Insolvency matters are covered under the Bankruptcy Code.
What is the legal definition of an insolvent estate?
Legal Definition of insolvent. 1 : having ceased paying or unable to pay debts as they fall due in the usual course of business — compare bankrupt. 2 : having liabilities in excess of a reasonable market value of assets held. 3 : insufficient to pay all debts an insolvent estate.
What does it mean when a bank is insolvent?
If you are insolvent, you do not have enough money to pay your debts. The bank was declared insolvent and closed in December. He was required to declare himself an insolvent debtor, to detail all of his debts, and to hold goods valued at no more than $20. If you are insolvent, you do not have enough money to pay your debts.