Related Words

Insolvent: Unable to meet debt obligations.

Bankrupt: If an individual or unincorporated company has greater liabilities than it has assets, the person or business can petition for, or be declared by its creditors, bankrupt. In the case of a li . . . View Full Definition

Subordinated Debt: Subordinated debt generally refers to debt securities that have a secondary or lesser claim to the issuer’s assets than more senior debt, should the issuer default on its obligations. In fac . . . View Full Definition

Sour Bond: A company's ability to satisfy its obligations to creditors when they are due. A company is 'technically insolvent' if it has enough assets to pay creditors, but cannot liquidate them quickl . . . View Full Definition

Resolution Trust Corporation (RTC): A government agency established in 1989 and disbanded in 1996 that administered federal savings and loan institutions that were insolvent between 1989 and August 1992 by either bailing them . . . View Full Definition

Accounting Insolvency: Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.

Insured Bond: An insured bond is a municipal bond whose interest and principal payments are guaranteed by a triple-A rated bond insurer. Insurance protects municipal bondholders against default by the iss . . . View Full Definition

Liquidator: Person appointed by an unsecured creditor in the United Kingdom to oversee the sale of an insolvent firm's assets and the repayment of its debts.

Bankruptcy: A form of debt relief, there are two kinds of bankruptcy. Personal bankruptcy: an individual, sole trader or partnership is formally declared bankrupt by the court (ie they cannot pay their . . . View Full Definition