Definition of insolvency
: 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 of insolvency from the Web
Hillary Clinton — and certainly Bernie Sanders — proposed to address the looming insolvency of Social Security and Medicare by expanding the programs and paying for the expansions with higher taxes.
The notice came in the form of an annual report from the program’s trustees, which said the program’s insolvency will hit in 2034 — just 17 years from now.
Then, as now, CPS was grappling with a cash shortage that placed it at the edge of insolvency.
If costs associated with charter school expansion are not mitigated, the district will eventually face financial insolvency.
Its mandate has been constrained in the last year, as much of its revenue was redirected to help Atlantic City stave off insolvency.
One of the largest contractors on the project, Isolux Corsan, is flirting with insolvency, raising questions about how well the state vetted the European company before a contract was signed.
In about four months last year, more than $500 million — or about 20 percent of the fund — was withdrawn, pushing it within a decade of insolvency.
Gov. Sam Brownback’s commitment to his signature tax cuts has not wavered even as Kansas is weeks away from financial insolvency.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'insolvency.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of insolvency
Financial Definition of INSOLVENCY
What It Is
In most usages, insolvency is the inability of a company or individual to meet its financial obligations as they come due. In the legal sense of the word, an entity is considered insolvent if its total liabilities exceed its total assets.
How It Works
In this case, the company must raise capital to pay its obligations via selling assets, borrowing, or somehow raising capital and/or reducing expenses.
If a company cannot meet its obligations, it may be forced to file for bankruptcy.
Additional Notes on insolvency
Insolvency matters are covered under the Bankruptcy Code.
Seen and Heard
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