a cessation of payments

USAGE SUMMARY

The phrase "a cessation of payments" is correct and usable in written English.
It can be used in financial or legal contexts to describe a situation where payments are stopped or halted. Example: "The company announced a cessation of payments due to unforeseen financial difficulties."

✓ Grammatically correct

Formal & Business

News & Media

Encyclopedias

Science

Human-verified examples from authoritative sources

Exact Expressions

6 human-written examples

"Argentina will not fall into a cessation of payments," Mr. de la Rúa said.

The New York Times

In some of these laws (e.g., that of Mexico) the commission of these specific acts raises merely a presumption of a cessation of payments.

Encyclopedia Britannica

While there, he tried to persuade the fund to reverse its decision not to release the loans, which are probably necessary to avert a cessation of payments on the $132 billion public-sector debt before the end of the year.

The New York Times

In addition, security interests or satisfaction obtained by the creditor after a cessation of payments or filing of a petition are voidable if the trustee shows that the creditor knew of the cessation of payments or petition.

Encyclopedia Britannica

Indeed, the proceeding always begins with a cessation of payments and ends up with a liquidation or continuation plans.

Journal of Innovation and Entrepreneurship

The firms which are able to sell their products are less likely subject to a cessation of payments.

Journal of Innovation and Entrepreneurship

Human-verified similar examples from authoritative sources

Similar Expressions

54 human-written examples

Many political analysts believe that his resignation is likely if there is a cessation of debt payments, which would make Senator Puerta interim president until new elections are held.

The New York Times

Although the meaning and nature of the proceeding may differ, the arrival in a commercial court which registers the cessation of payments gives a simple criterion to 'objectively' separate two classes of firms: those that are governed in accordance with the rules of collective proceedings and those which are still operating in an economic world dominated by the respect of contractual commitments.

Journal of Innovation and Entrepreneurship

As indicated above, a number of bankruptcy laws contain a relation-back effect, dating the bankrupt estate as of the time of the petition, the earliest commission of an act of bankruptcy, or the cessation of payments.

Encyclopedia Britannica

It is generally admitted that companies in cessation of payments are characterized by a lower level of long-term financial resources than sound ones.

Journal of Innovation and Entrepreneurship

That is why numerous studies agree that the cessation of payments is the final step of a process, sometimes called 'a spiral of failure', from which a firm can escape thanks to the adoption of corrective and preventive measures consisting in a modification of its operating cycle.

Journal of Innovation and Entrepreneurship

Expert writing Tips

Best practice

When discussing financial difficulties or legal proceedings related to debt, use "a cessation of payments" to clearly indicate the halting of payment obligations.

Common error

Avoid using "a cessation of payments" when you actually mean a temporary suspension. Cessation implies a more permanent end, whereas suspension suggests a possibility of resumption.

Linguistic Context

The phrase "a cessation of payments" functions as a noun phrase, typically serving as the subject or object of a sentence. It describes the act of stopping payments, as demonstrated by Ludwig, especially in formal and legal contexts.

Expression frequency: Rare

Frequent in

Formal & Business

25%

News & Media

25%

Science

25%

Less common in

Encyclopedias

25%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "a cessation of payments" is a noun phrase that signifies the act of stopping payments, usually due to financial difficulties or legal reasons. As Ludwig AI confirms, it is grammatically correct and primarily used in formal contexts such as business, legal, and academic settings. While alternatives like "suspension of payments" or "payment stoppage" exist, it's important to use the phrase accurately, avoiding confusion with temporary suspensions. The sources cited, including The New York Times and Encyclopedia Britannica, reinforce its formal usage. The phrase is relatively rare but essential for precise communication in appropriate contexts.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Suspension of payments

Indicates a temporary halt in payments.

Interruption of payments

Emphasizes the break in the payment flow.

Payment stoppage

Focuses on the action of stopping payments, simplifying the phrase.

Payment freeze

Suggests a sudden stop to payments.

Payment termination

Indicates the final end of payments.

Default on payments

Specifies the failure to make required payments.

Failure to pay

States the inability to make payments.

Payment failure

Highlights the event of not being able to pay.

Cessation of remittances

Refers to the ending of transferred payments.

Debt default

Focuses on the failure to repay a debt.

FAQs

How to use "a cessation of payments" in a sentence?

You can use "a cessation of payments" to describe a situation where an entity has stopped making payments. For instance, "The company announced "a cessation of payments" due to financial constraints".

What can I say instead of "a cessation of payments"?

Alternatives include "suspension of payments", "payment stoppage", or "default on payments", depending on the context.

Which is correct, "a cessation of payments" or "a suspension of payments"?

"A cessation of payments" implies a more permanent halt, while "a suspension of payments" suggests a temporary pause with the possibility of resuming payments later.

What's the difference between "a cessation of payments" and "debt default"?

"A cessation of payments" is a general term for stopping payments, while "debt default" specifically refers to the failure to repay a debt as agreed.