Act of Insolvency definition: Copy, customize, and use instantly
Introduction
The term "Act of Insolvency" refers to a situation where an individual or entity is unable to pay its debts as they become due, or when their liabilities exceed their assets. An act of insolvency often triggers legal consequences, including the initiation of bankruptcy proceedings or the enforcement of creditor rights. It is crucial to clearly define "Act of Insolvency" in contracts to specify the conditions under which insolvency-related actions may occur.
Below are various examples of how "Act of Insolvency" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Act of Insolvency" as bankruptcy
This definition ties "Act of Insolvency" to bankruptcy.
"Act of Insolvency" means the declaration or adjudication of bankruptcy under applicable law, where the debtor is unable to pay its debts or is insolvent.
Definition of "Act of Insolvency" as a failure to pay
This definition connects "Act of Insolvency" to a failure to pay.
"Act of Insolvency" refers to the failure of a party to pay its debts as they become due, resulting in the party’s insolvency.
Definition of "Act of Insolvency" as a voluntary action
This definition applies "Act of Insolvency" to voluntary actions.
"Act of Insolvency" means any voluntary action taken by the debtor, including the filing of a petition for bankruptcy or the appointment of a receiver, which acknowledges the debtor's inability to meet its financial obligations.
Definition of "Act of Insolvency" as a creditor's action
This definition links "Act of Insolvency" to actions by creditors.
"Act of Insolvency" refers to any action by a creditor, such as the initiation of legal proceedings or the appointment of a receiver, indicating that the debtor is insolvent and unable to satisfy its obligations.
Definition of "Act of Insolvency" in the context of cross-border insolvency
This definition ties "Act of Insolvency" to cross-border insolvency.
"Act of Insolvency" means any event or action that triggers insolvency proceedings in one or more jurisdictions, affecting the debtor’s assets and liabilities internationally.
Definition of "Act of Insolvency" in a corporate context
This definition connects "Act of Insolvency" to corporate insolvency.
"Act of Insolvency" refers to any event or action where a corporation is unable to meet its debts, including the initiation of liquidation or the appointment of a corporate trustee.
Definition of "Act of Insolvency" in the context of liquidation
This definition links "Act of Insolvency" to liquidation.
"Act of Insolvency" means the commencement of liquidation proceedings, where the debtor’s assets are distributed to satisfy outstanding debts due to the debtor’s insolvency.
Definition of "Act of Insolvency" as a judicial declaration
This definition applies "Act of Insolvency" to judicial declarations.
"Act of Insolvency" refers to a judicial determination by a court that the debtor is insolvent, and the debtor’s assets are insufficient to cover its debts.
Definition of "Act of Insolvency" as debt restructuring
This definition ties "Act of Insolvency" to debt restructuring.
"Act of Insolvency" means the initiation of debt restructuring proceedings by the debtor, acknowledging the inability to meet debt obligations without restructuring.
Definition of "Act of Insolvency" as insolvency triggering creditor rights
This definition links "Act of Insolvency" to the enforcement of creditor rights.
"Act of Insolvency" refers to an event in which the debtor’s insolvency status is officially recognized, triggering the rights of creditors to enforce their claims against the debtor’s assets.
Definition of "Act of Insolvency" in relation to financial distress
This definition connects "Act of Insolvency" to financial distress.
"Act of Insolvency" means an event where the debtor is in financial distress, evidenced by an inability to pay outstanding debts or meet financial obligations, resulting in insolvency proceedings.
Definition of "Act of Insolvency" as failure to comply with debt covenants
This definition applies "Act of Insolvency" to debt covenant violations.
"Act of Insolvency" refers to the debtor’s failure to comply with debt covenants, resulting in the default of its financial obligations and the initiation of insolvency proceedings.
Definition of "Act of Insolvency" in the context of trustee appointment
This definition ties "Act of Insolvency" to the appointment of a trustee.
"Act of Insolvency" refers to the appointment of a trustee or receiver, as a result of the debtor’s insolvency, to oversee the liquidation or reorganization of the debtor’s assets.
Definition of "Act of Insolvency" as a judicial foreclosure
This definition connects "Act of Insolvency" to judicial foreclosure.
"Act of Insolvency" means a judicial foreclosure proceeding initiated against the debtor, as a result of the debtor’s inability to fulfill its debt obligations.
Definition of "Act of Insolvency" in the context of a financial institution
This definition links "Act of Insolvency" to financial institutions.
"Act of Insolvency" refers to any act or event by a financial institution that demonstrates it is unable to meet its obligations, triggering insolvency proceedings.
Definition of "Act of Insolvency" in relation to insolvency proceedings
This definition connects "Act of Insolvency" to insolvency proceedings.
"Act of Insolvency" refers to the initiation of formal insolvency proceedings, including liquidation, bankruptcy, or a similar legal process resulting from the debtor's inability to pay its debts.
Definition of "Act of Insolvency" in the context of creditor action
This definition applies "Act of Insolvency" to actions taken by creditors.
"Act of Insolvency" means an event where a creditor takes legal action, such as filing a petition to declare the debtor insolvent due to their inability to meet financial obligations.
Definition of "Act of Insolvency" in the context of default on debt
This definition links "Act of Insolvency" to default on debt.
"Act of Insolvency" refers to a situation in which the debtor defaults on its obligations under a debt agreement, leading to the potential declaration of insolvency.
Definition of "Act of Insolvency" in the context of financial statements
This definition ties "Act of Insolvency" to financial statements.
"Act of Insolvency" means the debtor’s financial statement revealing that their liabilities exceed their assets, indicating that insolvency has occurred or is imminent.
Definition of "Act of Insolvency" as the appointment of a receiver
This definition connects "Act of Insolvency" to the appointment of a receiver.
"Act of Insolvency" refers to the appointment of a receiver or trustee to manage the debtor’s affairs due to the debtor’s inability to meet its financial obligations.
Definition of "Act of Insolvency" in the context of bankruptcy filing
This definition applies "Act of Insolvency" to bankruptcy filings.
"Act of Insolvency" means the filing of a bankruptcy petition by the debtor or a creditor, which triggers formal insolvency proceedings and the potential restructuring or liquidation of the debtor’s assets.
Definition of "Act of Insolvency" in relation to payment defaults
This definition ties "Act of Insolvency" to payment defaults.
"Act of Insolvency" refers to the failure of the debtor to make payments as they become due, signaling the debtor’s financial incapacity and the initiation of insolvency actions.
Definition of "Act of Insolvency" in the context of judicial dissolution
This definition links "Act of Insolvency" to judicial dissolution.
"Act of Insolvency" means the judicial dissolution of the debtor’s business due to its insolvency, where the court determines that the debtor cannot continue operations.
Definition of "Act of Insolvency" in the context of a solvency certificate
This definition connects "Act of Insolvency" to the issuance of a solvency certificate.
"Act of Insolvency" refers to a failure to obtain a solvency certificate from an authorized accountant or auditor, indicating that the debtor is unable to meet its financial obligations.
Definition of "Act of Insolvency" in relation to asset seizure
This definition ties "Act of Insolvency" to asset seizure.
"Act of Insolvency" means the seizure or attachment of a debtor's assets by creditors or court order due to the debtor’s insolvency.
Definition of "Act of Insolvency" in the context of debtor’s acknowledgment
This definition links "Act of Insolvency" to the debtor’s acknowledgment.
"Act of Insolvency" refers to an admission by the debtor that they are insolvent, which may include formal statements or actions indicating their inability to meet financial obligations.
Definition of "Act of Insolvency" in the context of restructuring efforts
This definition applies "Act of Insolvency" to restructuring.
"Act of Insolvency" means the debtor's inability to continue operations without resorting to restructuring efforts or agreements due to their financial insolvency.
Definition of "Act of Insolvency" in relation to cross-border insolvency
This definition connects "Act of Insolvency" to cross-border insolvency.
"Act of Insolvency" refers to any insolvency event that occurs internationally, affecting the debtor's financial position across multiple jurisdictions and triggering insolvency procedures in each applicable jurisdiction.
Definition of "Act of Insolvency" in the context of corporate debt obligations
This definition links "Act of Insolvency" to corporate debt.
"Act of Insolvency" means the inability of the corporation to meet its debt obligations under a corporate debt agreement, leading to insolvency procedures or default.
Definition of "Act of Insolvency" in relation to a payment moratorium
This definition applies "Act of Insolvency" to a payment moratorium.
"Act of Insolvency" refers to the declaration of a payment moratorium by the debtor, acknowledging their inability to pay debts as they become due and initiating insolvency proceedings.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.