Who is called Insolvent person? (Answer in one sentence)
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Suffice it to say that, the general meaning of the word insolvent is that he is a personwho is unable to pay his debts as and when they become due or whose assets are not sufficient to meet his obligations as and when they arise
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Insolvent person is the term used for a person who is no longer able to pay his debentures or bills. The non-payment of the to-be-paid bills or debentures cause the person insolvent and the phenomenon is known as insolvency of that person.
As per law, an insolvent person along with his property also loses the possession of all the negotiable instruments he has with him. A person is technically said to become insolvent when all his liabilities exceed all his assets.
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