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

A day before, Florida's Senate Banking and Insurance Committee unanimously approved a bill extending the ban on executives responsible for a company's insolvency from taking a position at another insurance firm, increasing the duration from two to five years. —Josh Hammer, Newsweek, 19 Mar. 2025

Some pension funds that had invested in gilts were pushed to the brink of insolvency, prompting the Bank of England to step in. —Anna Cooban, CNN, 17 Mar. 2025

Congress could mull eliminating payroll tax cap As Social Security’s trust funds face a looming insolvency date, some proposals have suggested eliminating or lifting the cap on earnings subject to the Social Security payroll tax. —Lorie Konish, CNBC, 7 Mar. 2025

Germany’s Volocopter has initiated insolvency proceedings, and Lilium — an electric air-taxi startup — could file for its second insolvency this year. —Gaurav Sharma, Forbes, 6 Mar. 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.