insolvency

noun

in·​sol·​ven·​cy (ˌ)in-ˈsäl-vən(t)-sē 

-ˈsȯl-

: the fact or state of being insolvent : inability to pay debts

Synonyms of insolvency

• bankruptcy

Examples of insolvency in a Sentence

unless the economy improves, many resorts in the area face insolvency

Recent Examples on the Web

Given that millions of seniors rely on Social Security for more than half of their annual income, shoring up the program to avoid insolvency is a pressing issue, the report said. —Aimee Picchi, CBS News, 6 Feb. 2026

Fiscal insolvency happens when a school district runs out of cash to pay its bills. —Jennah Pendleton, Sacbee.com, 6 Feb. 2026

Stephen Friedman Gallery in London has shut its doors permanently and begun insolvency proceedings after thirty years in business. —News Desk, Artforum, 5 Feb. 2026

An ordinary bettor might lay down money just to increase the pleasure of watching a big game—Walters was betting so much, so frequently, that spectatorship only reminded him of potential insolvency. —Dan Piepenbring, New Yorker, 4 Feb. 2026

Word History

First Known Use

1660, in the meaning defined above

Rhymes for insolvency

• solvency

Kids Definition

insolvency

noun

in·​sol·​ven·​cy (ˈ)in-ˈsäl-vən-sē 

plural insolvencies

: the quality or state of being insolvent

Legal Definition

insolvency

noun

in·​sol·​ven·​cy in-ˈsäl-vən-sē 

plural insolvencies

1

: the fact or state of being insolvent compare bankruptcy

2

: insufficiency (as of an estate) to discharge all enforceable debts

Note: Insolvency matters are covered under the Bankruptcy Code.