A person who has no money to pay off his debtsOut of the given alternatives, choose the one which can be substituted for the given words/sentence. A. DebtorB. PauperC. BeggarD. Insolvent (2024)

FAQs

What do you call a person who has no money to pay off his debt? ›

Insolvent is a person who has no money to pay off his debts.

A person or firm whose liabilities exceed the value of owned assets is termed as insolvent.

The one who is unable to pay one's debt is bankrupt or insolvent. (

Insolvency is a state of financial distress in which a person or business is unable to pay their debts. Insolvency is when liabilities are greater than the value of the company, or when a debtor cannot pay the debts they owe. A company can become insolvent due to a number of situations that lead to poor cash flow.

Insolvent- unable to pay debts owed.

A deadbeat is someone who owes money or has other financial obligations and doesn't meet them. Deadbeats don't pay their bills. This is an insult that is very specific: deadbeats don't pay what they owe.

A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer.

Bankrupt is used for a person who is unable to repay his/her debts. We observe that the meaning of bankrupt matches the description in the given sentence. Hence, option A is possibly the correct answer. Borrower is the person who has borrowed an entity from someone.

A debtor is someone who owes a debt or obligation to someone else. Most commonly, this is the obligation to pay money.

Informal. not paying one's debts or neglecting one's responsibilities: a deadbeat parent who won't pay for college; deadbeat borrowers.

What is inability to pay its debt? ›

In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be insolvent. There are two forms: cash-flow insolvency and balance-sheet insolvency.

“Insolvent.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/insolvent.

Legal Action: Creditors might take legal action to recover the amount owed. This could result in a civil case for collection of sum of money. Foreclosure or Seizure: If the debt is secured, such as in a mortgage or car loan, the creditor might initiate foreclosure or repossession procedures.

If this happens, the court will issue an order (known as a deficiency judgment) for you to pay the debt as well as the debt collector's attorney and collection fees. The debt collector can collect on this judgment by garnishing your wages or bank account or by placing a lien on any property you own.

Generally speaking, insolvency refers to situations where a debtor cannot pay the debts they owe. For instance, a troubled company may become insolvent when it is unable to repay its creditors money owed on time, often leading to a bankruptcy filing.

A person who is unable to pay his/her debt is called a 'bankrupt.

arrears balance due indebtedness liability obligation outstanding debt unpaid debt. unpaid bill (noun as in arrears)

Defaulting on a debt (See Default) Delinquent debt. An account on which a payment is past due. A creditor may report the past due account to a credit bureau. If an account becomes sufficiently delinquent, the consumer may be in default and a creditor may charge off the account.