insolvabil

Insolvabil is an adjective used in Romanian-language texts to describe a person or organization that cannot meet its financial obligations as they come due. In contemporary Romanian, the more common terms for this condition are insolvent and insolvență, while insolvabil appears infrequently and is often considered a variant or older form.

Etymology and usage: The word shares roots with related terms across Romance languages that derive from Latin solv- (to loosen, to pay). In practice, being insolvent means that liabilities exceed available cash flow and assets, making it impossible to satisfy debts as they mature. This status commonly triggers financial or legal processes intended to address the debts, such as restructuring, negotiations with creditors, or liquidation, depending on the jurisdiction and applicable law.

Legal and practical context: Insolvency is a formal condition recognized in financial and legal systems. Different countries distinguish between insolvency and ongoing solvency issues in the sense of profitability, but insolvency generally refers to an inability to fulfill financial obligations. The precise procedures, consequences, and eligibility criteria for insolvency or related remedies vary by law.

Terminology notes: In modern Romanian, insolvency law uses insolvență as the noun and insolvent as the adjective. Insolvabil is not the standard contemporary term and may appear mainly in older texts or regional usage. For most legal discussions, sticking to insolvent/insolvență provides clearer alignment with current practice.

See also: Insolvency, Insolvent, Insolvență, Faliment, Recapitalizare.