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

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

At the same time, Trump's tax cut would likely hasten the insolvency of the Social Security trust fund, which relies on those income taxes for funding, according to the nonpartisan Committee for a Responsible Federal Budget. —Aimee Picchi, CBS News, 5 Nov. 2024

Trump’s smorgasbord of tax proposals are poised to hasten Social Security’s insolvency, according to a recent report by the nonpartisan Committee for a Responsible Federal Budget. —William Gavin, Quartz, 30 Oct. 2024

Forbes contributor Teresa Ghilarducci notes analyses arguing Trump’s plans would hasten insolvency for Social Security, and could lead to a 33% cut in benefits. —Richard McGahey, Forbes, 30 Oct. 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.