The Legal Definition for Insolvency

I have heard that some corrupt thugs have tried to harass persons with the wrong charge that the person is insolvent because the person's debts exceed the person's income. The foregoing is the wrong standard. The correct Legal Standard for determining insolvency is whether or not the person is capable of making his or her debt service. You do not look at the total amount of the debt, but instead, you look at the debt payment schedule for each month, and compare that to any income or other money available to make the debt service payment. See, National Distiller's vs. Laubscher, 338 So. 2d 1269 (1976). And, if the person is paying the monthly payment, then there clearly is not insolvency. Moreover, if the deft is disputed, there is no insolvency. In fact, the debt cannot be considered valid unless the creditor has obtained a valid judgment in court after an adversarial trial.
(C)Copyright 2010 by Anthony J. Fejfar