The "Devil's Dictionary" is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary and used in today's bankruptcy arena.

INSOLVENT: An ugly word to the business owner and to its secured lender. A less ugly word to the bankruptcy practitioner, at least until the word “administratively” is attached to it. 

Defined by the Code as a financial condition such that an entity’s debts are greater than the fair value of the entity’s property, not including exempt property and not including property transferred, concealed, or removed with an intent to hinder, delay, or defraud the entity’s creditors. 

Bankruptcy Code § 101(32). See also Administratively Insolvent, Fraudulent Transfer, Preference.


The "Devil's Dictionary" is an excellent reference tool that reflects the collective wisdom of its four authors, Brett Anders, Jim Bird, David Ferguson, Dan Flanigan, and digital editor, Christopher Ward, who have a combined total of more than 130 years working in the forefront of real estate and other commercial finance, loan enforcement, financial restructuring and bankruptcy law.