Insolvency
Insolvency means inability to pay. The German Insolvency Regulation (InsO) defines the following as reasons for insolvency:
Section 17: Inability to pay
A debtor is regarded as unable to pay when he can no longer fulfil his payment obligations. This can be assumed as soon as he has ceased payment.
Section 18: Imminent inability to pay
This is already given when the debtor is unlikely to be in a position to meet his payment obligations punctually. There is considerable scope for discretion in this area, however.
Section 19: Overindebtedness
This applies to legal entities if their total assets are no longer sufficient to cover their existing liabilities.