Insolvent

/ɪnˈsɒlvənt/

Definitions

  1. (adj.) Unable to pay debts owed; financially bankrupt.
    The company was declared insolvent and entered bankruptcy proceedings.
  2. (n.) A person or entity unable to meet financial obligations as they come due.
    The court appointed a trustee to oversee the insolvent's assets.

Forms

  • insolvency
  • insolvents

Commentary

Typically used to describe financial status; in law, insolvency often triggers specific legal processes like bankruptcy.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

Draft confidently with Amicus

Create, negotiate, and sign agreements in one secure workspace—invite collaborators, track revisions, and keep audit-ready records automatically.

Open the Amicus app