sol·vent /'säl-vənt/ adj: able to pay all legal debts as they become due
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
able to pay, clear of encumbrance, creditworthy, financially sound, in good financial condition, moneyed, not owing, out of debt, owing nothing, pecunious, unindebted, with funds, with good credit
associated concepts: solvent debt
- Id solum nostrum quod debitis deductis nostrum est. — That only is ours which remains to us after deduction of our debtsII index solid (sound), solution (substance)
Burton's Legal Thesaurus. William C. Burton. 2006
The term is applied to a range of corporate issues. A company in liquidation is not solvent unless the directors can declare that it can pay all creditors within twelve months. A company is commonly assumed to be solvent if the value of the company's assets is more than its liabilities, taking account of contingent and future claims or that it will generate sufficient surplus revenue from its operations to make up the deficit.
Easyform Glossary of Law Terms. — UK law terms.