in·​sol·​ven·​cy (ˌ)in-ˈsäl-vən(t)-sē How to pronounce insolvency (audio)
: the fact or state of being insolvent : inability to pay debts

Examples of insolvency in a Sentence

unless the economy improves, many resorts in the area face insolvency
Recent Examples on the Web The fallout revealed the extent of the exchange’s financial insolvency, and led to allegations that Bankman-Fried used investments made by FTX customers to pay off debts and make side investments and contributions, transferring funds without proper disclosure and oversight. Daniel Kreps, Rolling Stone, 2 Nov. 2023 As Donald Trump’s longtime finance chief, Allen Weisselberg helped spare the former president’s real estate empire from its last existential threat, staving off insolvency after casino bankruptcies and an airline failure in the 1990s. Michael R. Sisak, Fortune, 10 Oct. 2023 This, in turn, could lead to well owners getting stuck with the expensive cleanup, causing insolvency and ultimately leaving the wells with the state. Mark Olalde, ProPublica, 2 Oct. 2023 Others crashed and burned, like WeWork, the high-flying co-working company that’s now at risk of insolvency. Sapna Maheshwari, New York Times, 20 Oct. 2023 The process allows the court to step in when an insolvency case involves another country, and it is intended to help promote cooperation between US courts, debtors and other jurisdictions involved in cross-border bankruptcy proceedings. Michelle Toh, CNN, 19 Sep. 2023 Prosecutors on Tuesday focused Ellison’s questioning on Alameda’s balance sheet in the year leading up to the FTX’s insolvency. Tory Newmyer, Washington Post, 10 Oct. 2023 Humana acquired Cano Health’s medical clinics in Nevada and Texas, a deal that will further expand Humana’s foray into owning providers and will provide some essential cash to Cano, a company that has been toeing the line of insolvency. Bob Herman Reprints, STAT, 2 Oct. 2023 Now the company is back in the spotlight, and its inability to resolve matters with its lenders is casting a pall over China’s real estate landscape, already littered with signs of insolvency. Alexandra Stevenson, New York Times, 28 Sep. 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'insolvency.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1660, in the meaning defined above

Time Traveler
The first known use of insolvency was in 1660

Dictionary Entries Near insolvency

Cite this Entry

“Insolvency.” Dictionary, Merriam-Webster, Accessed 3 Dec. 2023.

Kids Definition


in·​sol·​ven·​cy (ˈ)in-ˈsäl-vən-sē How to pronounce insolvency (audio)
plural insolvencies
: the quality or state of being insolvent

Legal Definition


in·​sol·​ven·​cy in-ˈsäl-vən-sē How to pronounce insolvency (audio)
plural insolvencies
: the fact or state of being insolvent compare bankruptcy
: insufficiency (as of an estate) to discharge all enforceable debts

Note: Insolvency matters are covered under the Bankruptcy Code.

More from Merriam-Webster on insolvency

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!