What are the condition for insolvency of buyer before paying the amount?

Insolvency of a buyer before payment typically occurs when the buyer is unable to meet their financial obligations, which can be indicated by an inability to pay debts as they come due or when liabilities exceed assets. Other conditions may include filing for bankruptcy or entering into arrangements with creditors. Additionally, if a buyer's cash flow is severely impaired, making it impossible to fulfill payment commitments, they may also be considered insolvent. Legal definitions of insolvency can vary by jurisdiction, so it's important to consider local laws.