insolvent


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Related to insolvent: IPO

Insolvent

A firm that is unable to pay debts (its liabilities exceed its assets).

Insolvency

Describing a situation in which an individual or firm is unable to service its debts. This occurs when the individual or firm has a little or no cash flow, and may occur due to poor cash management. An insolvent individual or firm often declares bankruptcy, or it may arrive at an understanding with creditors in which it restructures payments.

insolvent

Unable to meet debts or discharge liabilities. Compare solvent.

insolvent

The condition that exists when (1) one's liabilities are greater than assets,so that a complete liquidation even at fair market value would not pay all debts,or (2) one's current income is not sufficient to pay current bills, resulting in the need to contribute more cash to the organization or default on some payments.

References in periodicals archive ?
He said he expected 140,000 people to be declared insolvent this year, well up on the previous high of 107,000 in 2006.
These latest figures mean there are now more than 100,000 people becoming insolvent each year.
However, to the extent he can show that he is insolvent when discharged, he may be able to avoid tax on the COD income under Sec.
At best, the acquirer may have an unsecured claim against the insolvent insurer and would need to find a substitute for the licensed intellectual property or contract for services.
Similarly, a California court, stating that a corporate controller-dominator is treated the same as a director of an insolvent corporation -- and, therefore, has a fiduciary relationship to its creditors -- determined that when the defendant paid himself instead of making funds available for creditors, he violated his fiduciary duty to creditors (Commons v.
Therefore it was insolvent even after the debt cancellation.
File timely proofs of claim--Usually, the first step in submitting claims to the insolvent estate is the filing of a proof of claim by the bar date.
If the plan had failed, Lloyd's said it would have become insolvent.
ODA will request the Ohio Agricultural Commodity Commission approve any payments necessary from the Grain Indemnity Fund should the operation prove to be insolvent.
A debtor is insolvent to the extent his liabilities exceed the FMV of his assets.
When the Federal Reserve extends credit to troubled institutions, we do so only when the primary regulator has not determined that the institution is capital insolvent.
By the late 1970s, much of the thrift industry was insolvent, though its books didn't show it.