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

Both programs face long-term sustainability challenges, but broad reform remains politically difficult—even as insolvency looms. —Thomas McInerney, Fortune, 19 Dec. 2025

But for now, the continent’s capital markets are small and fragmented, with each country maintaining its own rules about everything from insolvency to tax to pensions. —Douglas Rediker, Foreign Affairs, 17 Dec. 2025

What the state agency found FCMAT last investigated the district’s potential insolvency in 2018, identifying several areas of concern including budget development, ongoing deficit spending, erosion of the unrestricted general fund balance, inadequate reserves, and leadership and stability. —Jennah Pendleton, Sacbee.com, 16 Dec. 2025

Higher benefits also strain the Social Security trust fund, which could face insolvency within a decade if long-term reforms are not enacted. —Aliss Higham, MSNBC Newsweek, 25 Nov. 2025

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.