Notorious Insolvency Law and Legal Definition
Notorious insolvency also termed as notour bankruptcy refers to a stage of insolvency in which the debtor has publicly acknowledged insolvency under the statute. This is a term of Scottish law. In Scotland, the law of bankruptcy arose as a remedy against the frauds of insolvent debtors. When a debtor in an obligation cannot fulfill his/her obligation as undertaken and makes public acknowledgment, in manner determined by statute, of his inability, the status or condition of bankruptcy has arisen, and the insolvent debtor is, in the language of the statutes, a ‘notour’ bankrupt.
Legislation has fixed the circumstances which constitute the status, and determined all the important consequences.
