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1 : having ceased paying or unable to pay debts as they fall due in the usual course of business compare bankrupt
2 : having liabilities in excess of a reasonable market value of assets held
3 : insufficient to pay all debts [an estate]
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.