No one is considered solvent unless he can pay all that he owes.

Explanation

Partial ability to pay is not solvency — the debtor's entire obligation determines his status.

Where this applies

• A debtor claims he can pay part of what he owes — does that make him solvent?
• The company says it can cover some of its debts — is that enough to avoid bankruptcy?

See also

• 6.5.3 Under the term "creditors" are included not only those who have lent money, but all to whom, from any cause, a debt is owed.