insolvency

3 ENTRIES FOUND:

in·sol·ven·cy

noun \(ˌ)in-ˈsäl-vən(t)-sē, -ˈsl-\

Definition of INSOLVENCY

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

Examples of INSOLVENCY

  1. <unless the economy improves, many resorts in the area face insolvency>

First Known Use of INSOLVENCY

1660

Related to INSOLVENCY

insolvency

noun    (Concise Encyclopedia)

Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet approach means that total liabilities exceed total assets.

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