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

Failure, insolvency or disruption can freeze capital and disrupt operations. — Expert Panel®, Forbes.com, 18 June 2026

The watchdog noted that the program hasn’t been so close to insolvency since 1983, when President Ronald Reagan and Speaker Tip O’Neill famously put partisanship aside to safeguard the program—until now. — Nick Lichtenberg, Fortune, 17 June 2026

Lawmakers pulled that lever in 1983 when the program was also on the verge of insolvency. — Aimee Picchi, CBS News, 17 June 2026

Until the 1980s, 65 was considered full retirement age, but in 1983, with Social Security facing insolvency, Congress passed legislation that gradually raised the full retirement age to 67. — Medora Lee, USA Today, 16 June 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.