<P> Insolvency in South African law refers to a status of diminished legal capacity ( capitis diminutio ) imposed by the courts on persons who are unable to pay their debts , or ( which amounts to the same thing ) whose liabilities exceed their assets . The insolvent 's diminished legal capacity entails deprivation of certain of his important legal capacities and rights , in the interests of protecting other persons , primarily the general body of existing creditors , but also prospective creditors . Insolvency is also of benefit to the insolvent , in that it grants him relief in certain respects . </P>
<P> Insolvency in South African law refers to a status of diminished legal capacity ( capitis diminutio ) imposed by the courts on persons who are unable to pay their debts , or ( which amounts to the same thing ) whose liabilities exceed their assets . The insolvent 's diminished legal capacity entails deprivation of certain of his important legal capacities and rights , in the interests of protecting other persons , primarily the general body of existing creditors , but also prospective creditors . Insolvency is also of benefit to the insolvent , in that it grants him relief in certain respects . </P>
what does it mean to be insolvent in south africa
what does it mean to be insolvent in south africa
a status of diminished legal capacity ( capitis diminutio ) imposed by the courts on persons who are unable to pay their debts
a status of diminished legal capacity ( capitis diminutio ) imposed by the courts on persons who are unable to pay their debts