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

At a time when Reagan’s tax cuts had created a big budget deficit and raised fears of looming insolvency, critics claimed that Jackson’s platform was unaffordable and irresponsible. —John Cassidy, New Yorker, 23 Feb. 2026

Sacramento’s schools have been teetering on the edge of insolvency for years due to outlays that are markedly greater than income. —Dan Walters, San Diego Union-Tribune, 21 Feb. 2026

The district has faced potential insolvency and state receivership amidst mounting budget woes. —Graham Womack, Sacbee.com, 20 Feb. 2026

Greenspan’s heroes In the early 1980s, the United States faced a similar emergency when the trust fund that supports Social Security neared insolvency, a situation where benefits would have been automatically slashed once funds were depleted. —Tristan Bove, Fortune, 19 Feb. 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.