Dictionary of Law
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

insolvency :: legal definition


Insolvency - n. 1) the condition of having more debts (liabilities) than total assets which might be available to pay them, even if the assets were mortgaged or sold. 2) a determination by a bankruptcy court that a person or business cannot raise the funds to pay all of his/her debts. The court will then "discharge" (forgive) some or all of the debts, leaving those creditors holding the bag and not getting what is owed them. The supposedly insolvent individual debtor, even though found to be bankrupt, is allowed certain exemptions, which permit him/her to retain a car, business equipment, personal property and often a home as long as he/she continues to make payments on a loan secured by the property.

See also: bankruptcy and Related Law Terms ↓


Related Law Terms

abuse of discretion :: n. a polite way of saying a trial judge has made s ... partner's realistic ability to pay.
account stated :: n. a statement between a creditor or the person to ... ending on the state. See also: debt
acknowledgment :: n. the section at the end of a document where a no ... me leases and various other papers.
ad litem :: adj. legal Latin meaning "for the purposes of the ... of age. See also: guardian ad litem
administrator :: n. the person appointed by the court to handle the ... e also: administer executor probate
after-acquired property :: n. 1) personal or real property acquired by a debt ... lso: bankruptcy secured transaction
alimony :: n. support paid by one ex-spouse to the other as o ... ild support divorce spousal support
answer :: n. in law, a written pleading filed by a defendant ... emurrer general denial verification
appeal :: 1) v. to ask a higher court to reverse the decisio ... ng, as in "he has filed an appeal."
arrest :: v. 1) to take or hold a suspected criminal with le ... anda warning probable cause warrant
asset :: n. generally any item of property that has monetar ... ill and rights to market a product.
attachment :: n. the seizing of money or property prior to getti ... bond. See also: writ of attachment
bailiff :: n. 1) a court official, usually a deputy sheriff, ... isdictional territory of a bailiff.
bankruptcy :: n. a federal system of statutes and courts which p ... y proceedings trustee in bankruptcy
bankruptcy court :: n. the specialized federal court in which bankrupt ... : bankruptcy bankruptcy proceedings
bankruptcy proceedings :: n. the bankruptcy procedure is: a) filing a petiti ... ankruptcy court claim in bankruptcy
bar examination :: n. the examination given in each state by either t ... n that district. See also: attorney
capital :: 1) n. from Latin for caput, meaning "head," the ba ... count capital assets stock in trade
charitable remainder trust (Charitable Remainder Irrevocable Unitrust) :: n. a form of trust in which the donor (trustor or ... ed up or committed. See also: trust
Chief Justice :: n. the presiding judge of any State Supreme Court ... nks of existing Associate Justices.
child custody :: n. a court's determination of which parent, relati ... pport custody divorce joint custody
complaint :: n. the first document filed with the court (actual ... g prayer service of process summons
conflict of interest :: n. a situation in which a person has a duty to mor ... a position adverse to the customer.
conservator :: n. a guardian and protector appointed by a judge t ... ies. See also: conservatee guardian
constitution :: n. the fundamental, underlying document which esta ... ts common law constitutional rights
constructive notice :: n. a fiction that a person got notice even though ... personally. See also: constructive
contract :: 1) n. an agreement with specific terms between two ... n oral contract unilateral contract
corporation :: n. an organization formed with state governmental ... ation public corporation securities
court :: n. 1) the judge, as in "The court rules in favor o ... cost and wait of full court trials.
creditor's claim :: n. a claim required to be filed in writing, in a p ... e also: claim in bankruptcy probate
d.b.a. :: n. short for "doing business as," when a person or ... that is registered with the state.
declaration of mailing :: n. a form stating that a particular document has b ... other party. See also: declaration
depreciation :: n. the actual or theoretical gradual loss of value ... e early years of use (accelerated).
discharge :: v. 1) to perform one's duties. 2) to dismiss someo ... d not be paid. See also: bankruptcy
discharge in bankruptcy :: n. an order given by the bankruptcy judge, at the ... red creditors. See also: bankruptcy
equal protection of the law :: n. the right of all persons to have the same acces ... laws." See also: due process of law
equity :: n. 1) a venerable group of rights and procedures t ... ry enjoin equitable injunction writ
examination :: n. 1) the questioning of a witness by an attorney. ... irect examination testimony witness
execution :: n. 1) the act of getting an officer of the court t ... so: death penalty writ of execution
federal courts :: n. the court system which handles civil and crimin ... rans' appeals. See also: bankruptcy
fiduciary :: 1) n. from the Latin fiducia, meaning "trust," a p ... lation fiduciary relationship trust
file :: 1) v. to deposit with the clerk of the court a wri ... rrespondence and notes on the case.
garnish :: v. to obtain a court order directing a party holdi ... ed. See also: garnishee garnishment
general partner :: n. 1) usually one of the owners and operators of a ... ted partnership partner partnership
grace period :: n. a time stated in a contract in which a late pay ... the contract, i.e. your insurance.
guarantee :: 1) v. to pledge or agree to be responsible for ano ... as some defect. See also: guarantor
guardian :: n. a person who has been appointed by a judge to t ... torship. See also: conservator ward
guest :: n. 1) in general, a person paying to stay in a hot ... ce. See also: guest statute invitee
habeas corpus :: (hay-bee-us core-puss) n. Latin for "you have the ... nality of a state court conviction.
hearsay rule :: n. the basic rule that testimony or documents whic ... interest dying declaration hearsay
hidden asset :: n. an item of value which does not show on the boo ... ets on a profit and loss statement.
impute :: v. 1) to attach to a person responsibility (and th ... also. See also: vicarious liability
incompetency :: n. the condition of lacking the ability to handle ... and/or represented by an attorney.
independent contractor :: n. a person or business which performs services fo ... ue independence. See also: employee
indictment :: n. a charge of a felony (serious crime) voted by a ... ictable offense preliminary hearing
indigent :: 1) n. a person so poor and needy that he/she canno ... person who is very poor and needy.
insanity :: n. mental illness of such a severe nature that a p ... M'Naughten rule temporary insanity
interest :: n. 1) any and all, partial or total right to prope ... nal property real property standing
invitee :: n. a person who comes onto another's property, pre ... ail employees. See also: negligence
joint and several :: adj. referring to a debt or a judgment for neglige ... ution contributory negligence joint
joint liability :: n. when two or more persons are both responsible f ... See also: joinder joint and several
judge :: 1) n. an official with the authority and responsib ... ice justice of the peace magistrate
judgment creditor :: n. the winning plaintiff in a lawsuit to whom the ... 's rights judgment prevailing party
jump bail :: v. to fail to appear for a court appearance after ... also: bail bail bond bail bondsman
justice :: n. 1) fairness. 2) moral rightness. 3) a scheme or ... e appellate courts. See also: court
juvenile court :: n. a special court or department of a trial court ... See also: court juvenile delinquent
lapse :: 1) v. to fail to occur, particularly a gift made i ... eficiary devisee legatee trust will
libel :: 1) n. to publish in print (including pictures), wr ... libel per se public figure slander
limited partnership :: n. a special type of partnership which is very com ... mited liability partner partnership
lis pendens :: (lease pen-dense) n. Latin for "a suit pending," a ... ob can be penalized by court order.
living will :: n. also called "a durable power of attorney," it i ... upport. See also: power of attorney
long-arm statute :: n. law which gives a local state court jurisdictio ... rt jurisdiction over the defendant.
Massachusetts Trust :: n. a business in which the investors give manageme ... provide for eventual distribution.
Miranda warning :: n. the requirement, also called the Miranda rule, ... me such a suspect? See also: rights
negligence :: n. failure to exercise the care toward others whic ... gence per se res ipsa loquitur tort
no fault insurance :: n: a type of automobile insurance required of car ... ling lawsuits. See also: negligence
not guilty :: n. 1) plea of a person who claims not to have comm ... t guilty by reason of insanity plea
notary public :: n. a person authorized by the state in which the p ... he state which appoints the notary.
notice :: n. 1) information, usually in writing in all legal ... Thirty-day notice three-day notice
obscene :: adj., adv. a highly subjective reference to materi ... en I see it." See also: pornography
paid into court :: adj. referring to money deposited with the clerk o ... differences. See also: interpleader
partner :: n. 1) one of the co-owners and investors in a "par ... ner limited partnership partnership
partnership :: n. a business enterprise entered into for profit w ... partnership partner silent partner
pour over will :: n. a will of a person who has already executed a t ... invalid trust. See also: trust will
power of attorney :: n. a written document signed by a person giving an ... y, as in a real estate transaction.
precedent :: 1) n. a prior reported opinion of an appeals court ... to perform. See also: stare decisis
privileged communication :: n. statements and conversations made under circums ... See also: attorney-client privilege
privileges and immunities :: n. the fundamental rights that people enjoy in fre ... t impinge on constitutional rights.
probate :: 1) n. the process of proving a will is valid and t ... e also: administrator executor will
process :: n. in law, the legal means by which a person is re ... service of process subpena summons
product liability :: n. the responsibility of manufacturers, distributo ... e known. See also: warrant warranty
promissory note :: n. a written promise by a person (variously called ... lso: interest obligee obligor usury
proof :: n. confirmation of a fact by evidence. In a trial, ... doubt preponderance of the evidence
qui tam action :: : (kwee tam) n. from Latin for "who as well," a la ... technical violations and/or errors.
remedy :: n. the means to achieve justice in any matter in w ... gment provisional remedy settlement
reorganization :: n. the implementation of a business plan to restru ... also: bankruptcy corporation merger
review :: n. the judicial consideration of a lower court jud ... ate court reversal reversible error
rights :: n. 1) plural of right, which is the collection of ... evidence. See also: Miranda warning
sanction :: n. 1) a financial penalty imposed by a judge on a ... ction." See also: contempt of court
search and seizure :: n. examination of a person's premises (residence, ... robable cause search search warrant
search warrant :: n. a written order by a judge which permits a law ... ble cause search search and seizure
several liability :: n. referring to responsibility of one party for th ... n joint and several promissory note
small claims court :: n. a division of most municipal, city or other low ... od example of a small claims court.
solvency :: n. 1) having sufficient funds or other assets to p ... cy. See also: bankruptcy insolvency
special administrator :: n. a person appointed by the court in a probate pr ... or administrator. See also: probate
special appearance :: n. the representation by an attorney of a person i ... anged. See also: general appearance
spontaneous exclamation :: n. a sudden statement caused by the speaker having ... et hit the girl." See also: hearsay
standing :: n. the right to file a lawsuit or file a petition ... so: actual controversy jurisdiction
statute of limitations :: n. a law which sets the maximum period which one c ... ies. See also: demurrer laches toll
straw man :: n. 1) a person to whom title to property or a busi ... a trail will mislead hunting dogs).
subpena duces tecum :: : (suh-pea-nah dooh-chess-take-uhm or dooh-kess-ta ... ng a court order. See also: witness
subrogation :: n. assuming the legal rights of a person for whom ... also: negligence subrogee subrogor
tools of trade :: n. in bankruptcy law, the equipment a person requi ... pay creditors. See also: bankruptcy
trust :: n. an entity created to hold assets for the benefi ... testamentary trust trustee trustor
trustee in bankruptcy :: n. a person appointed by a bankruptcy court to sup ... f the debtors. See also: bankruptcy
warrant :: 1) n. an order (writ) of a court which directs a l ... e search and seizure search warrant
will :: n. a written document which leaves the estate of t ... will and testament probate testator

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - I

i.e. :: prep. abbreviation for id est, which is Latin for ... "e.g.," which means "for example."
illegal :: 1) adj. in violation of statute, regulation or ord ... . See also: alien illegal immigrant
illegal immigrant :: n. an alien (non-citizen) who has entered the Unit ... ion date of a visa. See also: alien
illusory promise :: n. an agreement to do something that is so indefin ... he may have thought was a contract.
immaterial :: adj. a commonly heard objection to introducing evi ... ons. See also: irrelevant objection
immediately :: adv. 1) at once. 2) in orders of the court or in c ... oon as can be done" without excuse.
immunity :: n. exemption from penalties, payments or legal req ... ws. See also: governmental immunity
impanel :: v. to select and install a jury. See also: impanel ... l a jury. See also: impaneling jury
impaneling :: n. the act of selecting a jury from the list of po ... e juror jury panel venire voir dire
impeach :: v. 1) to discredit the testimony of a witness by p ... ve been found guilty by the Senate.
impeachment :: n. 1) discrediting a witness by showing that he/sh ... the trial itself. See also: impeach
impleader :: n. a procedural device before trial in which a par ... than having two suits in a series.
implied :: adj., adv. referring to circumstances, conduct or ... nt implied consent implied warranty
implied consent :: n. consent when surrounding circumstances exist wh ... aybe" or "later." See also: implied
implied contract :: n. an agreement which is found to exist based on t ... : contract express contract implied
implied covenant of good faith and fair dealing :: n. a general assumption of the law of contracts, t ... -long employment. See also: implied
implied warranty :: n. an assumption at law that products are "merchan ... er. See also: caveat emptor implied
impossibility :: n. when an act cannot be performed due to nature, ... cel) a contract. See also: contract
impotence :: n. the male's inability to copulate. Impotence can ... eans inability to produce children.
impound :: v. 1) to collect funds, in addition to installment ... cases. See also: forfeit forfeiture