Soil Water Movement Water movement in soil is from a zone of relatively high to low water potential. Movement may occur by saturated or unsaturated liquid flow or in the vapor phase. Total water potential under saturated conditions may include gravitational and pressure components.
Whether the taxpayer is insolvent is a vital consideration in determining if debt forgiveness results in income to the taxpayer. However, the code, IRS, and the courts have not provided an adequate definition of the term, and there is confusion as to what assets and liabilities are to be included in its determination.
The term default should be distinguished from the terms insolvency and bankruptcy.  1 Default essentially means a debtor has not paid a debt which he or she is required to have paid.  2 Insolvency is a legal term meaning that a debtor is unable to pay his or her debts. Illiquidity describes the fact that the debtor has only insufficient cash to pay his or her debts. Bankruptcy is a legal finding that imposes court supervision over the financial affairs of those who are insolvent or in default.