insolvency Definition
- 1the state of being unable to pay debts as they fall due or having liabilities in excess of assets
- 2the condition of not having enough money to pay for necessities
Using insolvency: Examples
Take a moment to familiarize yourself with how "insolvency" can be used in various situations through the following examples!
Example
The company was forced into insolvency after a series of financial losses.
Example
The insolvency of the business led to the loss of many jobs.
Example
Personal insolvency can have serious consequences for individuals and their families.
insolvency Synonyms and Antonyms
Synonyms for insolvency
Phrases with insolvency
a situation where a company is unable to pay its debts as they fall due or has liabilities in excess of assets
Example
The company was declared to be in corporate insolvency and was placed under administration.
a situation where an individual is unable to pay their debts as they fall due or has liabilities in excess of assets
Example
The number of people experiencing individual insolvency has been increasing in recent years.
a situation where a company has liabilities in excess of assets, but is still able to pay its debts as they fall due
Example
Although the company was technically insolvent, it was able to continue operating due to its strong cash flow.
Origins of insolvency
from Latin 'in-' meaning 'not' + 'solvō' meaning 'loosen'
Summary: insolvency in Brief
The term 'insolvency' [ɪnˈsɒlvənsi] refers to the state of being unable to pay debts as they fall due or having liabilities in excess of assets. It can apply to both companies and individuals, with serious consequences for both. 'Insolvency' is often used interchangeably with 'bankruptcy,' and other synonyms include 'failure' and 'ruin.'
