What context can I use each word in?
Learn when and how to use these words with these examples!
receivership
Example
The company was placed in receivership after it failed to meet its financial obligations. [receivership: noun]
Example
The receiver was tasked with managing the company's assets during the receivership period. [receiver: noun]
insolvency
Example
The company declared insolvency after it failed to pay its creditors. [insolvency: noun]
Example
The company's insolvency was caused by its inability to generate sufficient revenue. [insolvency: noun]
Good things to know
Which word is more common?
Insolvency is more commonly used than receivership in everyday language. Insolvency is a more general term that covers a wider range of financial distress situations, while receivership is a specific legal process.
What’s the difference in the tone of formality between receivership and insolvency?
Receivership is typically associated with a formal and legal tone, while insolvency can be used in both formal and informal contexts.
