Question

Under the Uniform Commercial Code, ___________ is a term describing a person who ceases to pay "his debts in the ordinary course of business or cannot pay his debts as they become due or is insolvent within the meaning of federal bankruptcy law."

Answer 1

Bankrupt

Step-by-step explanation:

A person or company is declared bankrupt by the law when they are most unable to meet their obligations at the time they are due. Another way to describe such people is INSOLVENT. At this point the bankrupt person is made to use his personal property or if a company, assets are sold to pay off the debts.