Who is the insolvent person?

The "impoverished" (al-mu‘sir) is one who is unable to provide for himself or fulfill his obligations through wealth or earnings. It has also been said that it is one whose expenses exceed his income. The impoverished is divided into two categories: one whose deferment is recommended (mustahabb), namely, someone who possesses assets but lacks liquidity; and one whose deferment is obligatory (wājib), namely, the destitute.