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

For so many of us, Social Security benefits and Medicare help, but the cost of housing, food, healthcare, and just about everything else has increased dramatically in recent years, leaving fewer dollars in the bank and pushing many of us closer to the brink of insolvency. —Kay Warren, Hartford Courant, 29 Mar. 2025

However, critics argue this could accelerate the program's insolvency. —Matt Robison, Newsweek, 18 Feb. 2025

The founder of the now-bankrupt Galerie Thomas in Munich is being investigated alongside his daughter on suspicion of fraud, breach of trust, and delaying insolvency proceedings, German officials announced. —George Nelson, ARTnews.com, 5 Feb. 2025

To avoid insolvency, the plan could be forced to lean on its member carriers. —Laurence Darmiento, Los Angeles Times, 18 Jan. 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.