A person who has no money to pay off his debtsOut of the given alternatives, choose the one which can be substituted for the given words/sentence. A. DebtorB. PauperC. BeggarD. Insolvent (2024)
Hint: In the above question we have to choose an option that can best replace the given phrase ‘ person who has no money to pay off his debts’. All the given options are closely related to those people who are usually financially restricted.
Complete answer: Let us first understand the meaning of the given options: A) Debtor-A person who owes money to his/her lender which is yet to be paid. Or it can also refer to a person who has neglected/violated their duty. The debtor does not have to necessarily be related to money. One can be a debtor of kindness or of some favour which may or may not be returned. B) Pauper- A poor person who lives off the money derived from charity or any other public support (can be in the form of supply of necessities). C) Beggar-It refers to a person who begs other people to live a life. Such people usually ask for food, clothes and other basic things from people on the streets. The trait of begging is generally associated with those who beg on the street but it can also apply to someone who pleads with someone desperately for something as well like ‘the child begged his parents for the toy.’. D) Insolvent- It refers to a trait where the person is incapable to pay back the amount that he/she has borrowed from others.
Therefore the correct answer is option ‘D’. Insolvent is a person who has no money to pay off his debts.
Note: In the question while the first three options are nouns, the last option, ‘insolvent’ is an adjective because it primarily shows a quality/trait of the person. For e.g. Kiran became insolvent.
Option A - 'Bankrupt' means unable to pay what you owe. When a person cannot repay a loan or the money that he has borrowed, he is said to be a 'bankrupt'. Thus option A is the correct answer. 'A person who is unable to pay his/her debt is called a 'bankrupt. '
Insolvency is a state of financial distress in which a person or business is unable to pay their debts. Insolvency is when liabilities are greater than the value of the company, or when a debtor cannot pay the debts they owe. A company can become insolvent due to a number of situations that lead to poor cash flow.
A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer.
Debtor or creditor are words you have probably heard before, but you might not be sure what they mean. They describe a relationship where one party owes money to another party. The debtor is the party that owes the money (debt), while the creditor is the party that loaned the money.
Living a debt-free life can mean different things to different people, but in the broadest sense, it means having no outstanding debts in your name. This means zero credit card debt, no car loans, and no mortgage.
“It could affect employment, housing and more.” Avoiding payment also means that creditors can sue you for unpaid bills. In some states, you could get your wages garnished or have your assets seized. You're still paying your outstanding debt even if you aren't making the payments directly.
If you fall behind on secured debts, you can lose those assets, like your house or car. If you fall behind on unsecured debts, such as student loans and medical bills, it's arguably far less of a serious situation. Your debt will go to a collection agency. Debt collectors will contact you.
Introduction: My name is Annamae Dooley, I am a witty, quaint, lovely, clever, rich, sparkling, powerful person who loves writing and wants to share my knowledge and understanding with you.
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