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

The proposal would have allowed the state Department of Finance to advance future state funding to a school district facing cash insolvency. — Chaewon Chung, Sacbee.com, 14 Sep. 2026

By doing this, lowest-income beneficiaries would receive larger benefits, poverty would be reduced, and Social Security's insolvency would be delayed, advocates said. — Medora Lee, USA Today, 9 Sep. 2026

A number of the state’s local school systems are in financial straits, with some — such as Sacramento City Unified — flirting with insolvency. — Dan Walters, Oc Register, 31 Aug. 2026

Social Security swallows nearly a quarter of the federal budget and is less than a decade away from insolvency. — Andrew G. Biggs, Washington Post, 28 Aug. 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.