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

• bankruptcy

Examples of insolvency in a Sentence

unless the economy improves, many resorts in the area face insolvency

Recent Examples on the Web

Social Security and Medicare, the two bedrock programs supporting older Americans, are drawing closer to insolvency than many might realize. —Eleanor Pringle, Fortune, 28 July 2025

But that’s not enough opposition to stop CPS from lurching substantially further toward insolvency if Harden and interim school Superintendent Macquline King choose that route. —The Editorial Board, Chicago Tribune, 25 July 2025

Two decades later, Social Security remains at risk of insolvency and will require reform of some sort, quite likely by the end of this decade. —Orlando Sentinel, The Orlando Sentinel, 22 July 2025

This can trigger trading loses, or systemic market risks to insolvency and liquidity, according to S&P Global Ratings. —Alain Sherter, CBS News, 15 July 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.