The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.

What is INSOLVENCY

The condition of a person who is insolvent; inability to pay one’s debts; lack of means to pay one’s debts. Such a relative condition of a man’s assets and liabilities that the former, if all made immediately available, would not be sufficient to discharge the latter. Or the condition of a person who is unable to pay his debts as they fall due, or in the usual course of trade and business. See Dewey v. St. Albans Trust Co., 56 Vt. 475. 48 Am. Rep. 803; Toof v. Martin, 13 Wall. 47, 20 L. Ed. 4S1; Miller v. Southern Land & Lumber Co., 53 S. C. 304, 31 S. E. 2S1 ; Leitch v. Ilollis- ter, 4 N. Y. 215; Silver Valley Mining Co. v. North Carolina Smelting Co., 119 N. C. 417, 25 S. E. 954; French v. Andrews, 81 Ilun. 272, 30 N. Y. Supp. 796; Appeal of Eowersox, 100 Pa. 438, 45 Am. Rep. 387; Van Riper v. Poppenhausen. 43 N. Y. 75; Phipps v. Harding, 70 Fed. 470, 17 C. C. A 203. 30 L. R. A. 513; Shone v. Lucas, 3 Dowl. & R. 218; Herrick v. Rorst, 4 Hill (N. Y.) 652; Atwater v. American Exch. Nat. Bank, 152 111. 605, 38 N. E. 1017; Rug- gles v. Cannedy, 127 Cal. 290, 53 Pac. 916, 46 L. R. A. 371. As to the distinction between bankruptcy and insolvency, see BANKRUPTCY.

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