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

But the governor does not appear to have a plan to address the insolvency of the state’s FAIR Plan, an expensive insurance program of last resort, to rebuild the homes, businesses and jobs lost. —Alexandra MacEdo, Orange County Register, 16 Jan. 2025

That’s pushed the FAIR Plan toward the brink of insolvency. —Jovi Dai, The Mercury News, 9 Jan. 2025

In either case, a solution to the problem of insolvency would far outweigh any benefit from temporary giveaways. —Sun Sentinel Editorial Board, Sun Sentinel, 8 Jan. 2025

In August 2024, the International Monetary Fund estimated that roughly 50 percent of Chinese property developers are on the brink of insolvency. —Jude Blanchette, Foreign Affairs, 7 Jan. 2025

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.