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term:
Insolvency
insolvency n
pl: -cies
1 : the fact or state of being insolvent compare bankruptcy
2 : insufficiency (as of an estate) to discharge all enforceable debts NOTE: Insolvency matters are covered under the Bankruptcy Code.
Source: Merriam-Webster’s Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.