from
The Collaborative International Dictionary of English v.0.48
Insolvent \In*sol"vent\, a. [Pref. in- not + solvent: cf. OF.
insolvent.] (Law)
(a) Not solvent; not having sufficient estate to pay one's
debts; unable to pay one's debts as they fall due, in
the ordinary course of trade and business; as, in
insolvent debtor.
(b) Not sufficient to pay all the debts of the owner; as,
an insolvent estate.
(c) Relating to persons unable to pay their debts.
[1913 Webster]
{Insolvent law}, or {Act of insolvency}, a law affording
relief, -- subject to various modifications in different
States, -- to insolvent debtors, upon their delivering up
their property for the benefit of their creditors;
bankruptcy law. See {Bankrupt law}, under {Bankrupt}, a.
[1913 Webster]