Definitions and Examples of insolvent, bankrupt, indebted
Learn when and how to use these words with these examples!
Unable to pay debts owed; having liabilities that exceed assets.
Example
The company was declared insolvent after it failed to repay its loans.
Unable to pay debts owed; having been legally declared unable to pay debts.
Example
After losing a major lawsuit, the company went bankrupt and had to shut down.
Owing money to someone or something; having an obligation to repay a debt.
Example
He was heavily indebted to his creditors and had to work multiple jobs to pay off his loans.
Key Differences: insolvent vs bankrupt vs indebted
- 1Insolvent and bankrupt both describe a state of financial ruin, but bankrupt is a legal term that implies a formal declaration of insolvency.
- 2Indebted describes owing money to someone or something, but it does not necessarily imply insolvency.
Effective Usage of insolvent, bankrupt, indebted
- 1Financial Planning: Use these antonyms to understand the consequences of poor financial decisions and plan accordingly.
- 2Business Communication: Incorporate these antonyms in business conversations to discuss financial stability and risk management.
- 3Legal Contexts: Use bankrupt in legal contexts to refer to a formal declaration of insolvency.
Remember this!
The antonyms of solvent describe a lack of financial stability or the inability to pay debts. Insolvent and bankrupt both describe a state of financial ruin, with bankrupt being a legal term. Indebted describes owing money without necessarily implying insolvency. Use these antonyms in financial planning, business communication, and legal contexts.
