insolvent
Definition
Person or firm whose liabilities exceed the value of owned assets. It is commonly illegal for the directors of an insolvent firm to continue to trade after becoming aware of their insolvent position. If despite their knowledge of the firm's insolvent position they do not refrain from receiving goods on credit, they may be charged with fraudulent misrepresentation of facts and may become personally liable for the firm's debts. If a seller discovers the insolvent status of a buyer after making a sale, the seller can reclaim the goods within a certain period.
insolvent is in the Accounting & Auditing, Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.
insolvent appears in the definitions of the following terms:
arrangement,
illiquid,
deed of arrangement,
administrator,
voluntary arrangement,
fire sale,
disqualification of directors,
bankruptcy,
administrative action,
stoppage in transitu
and
This content can be found on the following page:
http://www.businessdictionary.com/definition/insolvent.html
email to a friend print this definition cite this definition