Solvency Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Solvency, written in plain English, along with examples of how it is used.

What is Solvency?

n. The term ‘Solvency’ is used to represent the state of possession of surplus assets over the liabilities. It is derived from the commonly used term insolvency which means a person or entity does not have enough assets to pay off his creditors.