act of insolvency

2 definitions found

act of insolvency - Collaborative International Dictionary of English v.0.48 :

  Insolvency \In*sol"ven*cy\, n.; pl. Insolvencies. (Law)
        (a) 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; as,
            a merchant's insolvency.
        (b) Insufficiency to discharge all debts of the owner; as,
            the insolvency of an estate.
            [1913 Webster]
  
     Act of insolvency. See Insolvent law under Insolvent,
        a.
        [1913 Webster]

  Insolvent \In*sol"vent\, a. [Pref. in- not + solvent: cf. OF.
     insolvent.] (Law)
        (a) Not solvent; not having sufficient estate to pay one's
            debts; unable to pay one's debts as they fall due, in
            the ordinary course of trade and business; as, in
            insolvent debtor.
        (b) Not sufficient to pay all the debts of the owner; as,
            an insolvent estate.
        (c) Relating to persons unable to pay their debts.
            [1913 Webster]
  
     Insolvent law, or Act of insolvency, a law affording
        relief, -- subject to various modifications in different
        States, -- to insolvent debtors, upon their delivering up
        their property for the benefit of their creditors;
        bankruptcy law. See Bankrupt law, under Bankrupt, a.
        [1913 Webster]