1. The state or condition of one who is a bankrupt; amenability to the bankrupt laws; the condition of one who has committed an act of bankruptcy , and is liable to be proceeded against by his creditors therefor, or of one whose circumstances are such that he is entitled, on his voluntary application , to take the benefit of the bankrupt laws. The term is used in a looser sense as synonymous with ” insolvency ,”
Black’s Law Online Dictionary
