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

The Congressional Budget Office has a more dire forecast, anticipating the retirement trust fund may run out sooner, in mid-2032, and that retirees may see larger benefit cuts, at 26%, upon insolvency. — Lorie Konish, CNBC, 1 Nov. 2026

That’s as the federal government plans to boost defense spending while also facing the insolvency of the Social Security retirement trust fund in six years. — Jason Ma, Fortune, 26 Oct. 2026

Florida homeowners currently pay the highest insurance rates in the nation, with more than a dozen insurers having exited the state or entered insolvency as damage claims increase. — News Desk, Artforum, 21 Oct. 2026

Los Angeles Unified is at high risk of insolvency, California’s fiscal watchdog says, citing declining enrollment, rising staff and labor costs, and growing expenses for special education. — Howard Blume, Los Angeles Times, 6 Oct. 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.