Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Balance-sheet insolvency
see insolvency.
Insolvency
n. 1. The condition of being unable to pay debts as they fall due or in the usual course of business. 2. The inability to pay debts as they mature. - Also termed failure to meet obligations. See BANKRUPTCY (2). Cf. SOLVENCY. balance-sheet insolvency. Insolvency created when the debtor's liabilities exceed its assets. 0 Under some state laws, balancesheet insolvency prevents a corporation from making a distribution to its shareholders. equity insolvency. Insolvency created when the debtor cannot meet its obligations as they fall due. ( Under most state laws, equity insolvency prevents a corporation from making a distribution to its shareholders.
contemplation of insolvency
See CONTEMPLATION OF BANKRUPTCY.
decree of insolvency
probate-court decree declaring an estate's insolvency.
equity insolvency
See INSOLVENCY.
insolvency proceeding. Archaic.
A bankruptcy proceeding to liquidate or rehabilitate an estate. See BANKRUPTCY (1).
notorious insolvency
Scots law. A bankruptcy; the stage of insolvency in which the debtor has publicly acknowledged insolvency under the statute. ( This stage is usu. followed by sequestration, which is notorious insolvency coupled with the appointment of a trustee for creditors. - Also termed notour bankruptcy "Bankruptcy, according to the law of Scotland, is public or notorious insolvency. When a debtor in an obligation cannot fulfil his obligation as undertaken a position which constitutes insolvency - and makes public acknowledgment, in manner determined by statute, of his inability, the status or condition of bankruptcy has arisen, and the insolvent debtor is, in the language of the statutes, a 'notour' bankrupt .The law of notour bankruptcy is mainly statutory. Legislation has fixed the circumstances which constitute the status, and determined all the most important results." George Watson, Bell's Dictionary and Digest of the Law of Scotland 78 (3d ed. 1882).