insolvency

noun

in·​sol·​ven·​cy (ˌ)in-ˈsäl-vən(t)-sē 

-ˈsȯl-

: the fact or state of being insolvent : inability to pay debts

Synonyms

• bankruptcy
• failure
• ruin

Examples of insolvency in a Sentence

unless the economy improves, many resorts in the area face insolvency

Recent Examples on the Web

The company, which grew to prominence during the Covid-19 pandemic as the maker of one of the only molecular at-home tests for the virus, has been teetering on the edge of insolvency for months. —Brittany Trang, STAT, 22 May 2024

Meanwhile, speculation increases that the state’s insurer of last resort – the bare-bones FAIR (Fair Access to Insurance Requirements) Plan – could face insolvency as desperate homeowners overburden that system. —The Editorial Board, Orange County Register, 20 May 2024

Word History

First Known Use

1660, in the meaning defined above

Kids Definition

insolvency

noun

in·​sol·​ven·​cy (ˈ)in-ˈsäl-vən-sē 

plural insolvencies

: the quality or state of being insolvent

Legal Definition

insolvency

noun

in·​sol·​ven·​cy in-ˈsäl-vən-sē 

plural insolvencies

1

: the fact or state of being insolvent compare bankruptcy

2

: insufficiency (as of an estate) to discharge all enforceable debts

Note: Insolvency matters are covered under the Bankruptcy Code.