WordValeinsolvency
being unable to pay debts when they are due
In more detail
the state of not having enough money to pay debts; bankruptcy
Examples
- The company filed for insolvency after years of losing money.
How to use insolvency
Insolvency is a legal and financial term referring to the formal state of being unable to pay debts as they fall due. It is used in both personal and corporate contexts and often leads to formal proceedings. While bankruptcy is sometimes used interchangeably, insolvency is the broader condition, and bankruptcy is often the legal process that follows.
Common phrases
- declare insolvency
- face insolvency
- insolvency proceedings
- personal insolvency
- corporate insolvency
Synonyms
bankruptcy · financial ruin · default · liquidation · inability to pay
Opposites
solvency · liquidity
Word family
insolvent (adjective) · insolvent (noun - a person) · insolvently (adverb)
A common mistake
Learners sometimes use insolvency and bankruptcy interchangeably, but insolvency is the underlying financial condition while bankruptcy is the legal declaration or process addressing that condition.
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