What term describes a person who cannot settle their financial obligations?

English Mcqs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
English Mcqsenglish-mcqs
Published
12 Dec 2018
Last updated
28 May 2026

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Explanation

The terms foreclosure, insolvency, and bankruptcy all relate to situations where debts cannot be paid. Foreclosure refers to the process of reclaiming property due to unpaid debts, insolvency means being unable to meet financial obligations, and bankruptcy is a legal declaration of inability to pay debts. Therefore, all these terms are relevant.

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