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

Together, these vulnerabilities—domestic fragmentation and strategic insolvency—threaten the United States’ stability and security, creating dualities that define its power. —Michael Beckley, Foreign Affairs, 7 Jan. 2025

Apparently, around 3,700 employees will be affected by the insolvency. —New Atlas, 1 Dec. 2024

The deficit watchdog released a projection Monday that Trump would move up the Social Security trust fund's insolvency by three years. —Ben Adler, USA TODAY, 26 Oct. 2024

Patients couldn’t get their medications covered; doctors struggled to get treatments authorized; medical clinics, unable to meet payroll, were pushed to the brink of insolvency. —Dhruv Khullar, The New Yorker, 12 Dec. 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.