Simple English definitions for legal terms
Read a random definition: Federal Aviation Act
Failing circumstances refer to a situation where a person or a company is unable to pay their debts on time or in the usual way. This is also known as insolvency. There are two types of insolvency: balance-sheet insolvency, which happens when a person or company's liabilities are greater than their assets, and equity insolvency, which happens when they cannot meet their obligations as they fall due. When a company is insolvent, it may not be able to distribute money to its shareholders.
Failing circumstances refer to the condition of being unable to pay debts as they fall due or in the usual course of business. It is also known as insolvency.
These examples illustrate how failing circumstances or insolvency can affect a company's ability to pay its debts and meet its obligations. When a company is insolvent, it may have to file for bankruptcy or restructure its debts to avoid going out of business.