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

Forgiven debt over $600 is treated as taxable income by the IRS unless the borrower qualifies for an insolvency exception or another exclusion, which can shrink the real-world benefit further. — Angelica Leicht, CBS News, 18 Aug. 2026

The district must identify about $150 million in cash solutions by June 2027 to avoid insolvency, according to the county office. — Chaewon Chung updated August 18, Sacbee.com, 18 Aug. 2026

The breach is the latest blow to a struggling small city that has faced years of severe budget deficits, pushing it to the brink of insolvency, as well as chronic understaffing in its police, fire and other municipal departments. — Los Angeles Times, 15 Aug. 2026

Mayweather, in contrast, is not in bankruptcy or insolvency proceedings. — Michael McCann, Sportico.com, 30 July 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.