The term 'unable to pay one's debts' can be summarized by the word 'BANKRUPT'. Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. It is usually initiated by the debtor, but can sometimes be forced upon the debtor by creditors. Bankruptcy is not the same as insolvency, which is inability to pay debts as they fall due, but it is a legal process by which debtors are relieved of their financial obligations.