Insolvency

usgb/ɪnˈsɑːlvənsi/
noun

The state of not having enough money to pay the debts you owe.

Due to insolvency, the company had to be shut down.
Visual representation of "insolvency" - The state of not having enough money to pay the debts you owe

Often appears as...

  • declare insolvency
  • insolvency proceedings

Usage tips

Formal

Technical

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Visual representation of "insolvency"
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Financial Distress

Insolvency suggests serious financial trouble, beyond just being low on cash.

Illustration for Financial Distress
The insolvency of the shop was evident with its constant sale signs and empty shelves.
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Legal Implications

Insolvency can lead to legal actions like bankruptcy protection or liquidation.

Illustration for Legal Implications
His insolvency forced him to consider bankruptcy as his only option.
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Not Bankrupt Yet

Insolvency doesn't always mean bankruptcy; it's about poor liquidity, not total failure.

Illustration for Not Bankrupt Yet
Despite concerns of insolvency, the firm had not yet declared bankruptcy.
Visual representation of the word "Insolvency"

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