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

Examples of insolvency in a Sentence

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

Recent Examples on the Web

For now, few politicians are willing to support the tax increases and benefit reductions that will be necessary to at least delay Social Security’s pending insolvency. —Howard Gleckman, Forbes.com, 12 Aug. 2025

Social Security's future The Social Security Office of the Chief Actuary estimates President Donald Trump's tax package moves the insolvency date for the Social Security trust fund forward by about three months from 2033 to 2032. —Medora Lee, USA Today, 12 Aug. 2025

But the real flood began after 1975, as the city clawed back from the brink of insolvency. —Christopher Bonanos, Curbed, 11 Aug. 2025

Warren Buffett has been vocal about the dangers of Social Security insolvency and the looming benefit cuts that millions of retirees could face if action is not taken soon. —Eleanor Pringle, Fortune, 28 July 2025

Word History

First Known Use

1660, in the meaning defined above

Rhymes for insolvency

• solvency

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.