insolvency
noun
in·sol·ven·cy
(ˌ)in-ˈsäl-vən(t)-sē 
-ˈsȯl-
: 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 on the Web
The vote comes as the district faces insolvency and a $9 million budget deficit for the 2026-27 school year.
—
Molly Gibbs, Mercury News, 23 Jan. 2026
Of course, what nobody is really talking about is what would happen to this deal if the city should prove unable to meet all of its obligations in the future and the state of Illinois decides to allow some kind of insolvency for its biggest municipality.
—The Editorial Board, Chicago Tribune, 22 Jan. 2026
There was a lot of talk about the death of the department store as Saks Global limped along last year and then finally collapsed into insolvency late Tuesday.
—Evan Clark, Footwear News, 15 Jan. 2026
Both programs face long-term sustainability challenges, but broad reform remains politically difficult—even as insolvency looms.
—Thomas McInerney, Fortune, 19 Dec. 2025
See All Example Sentences for insolvency
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Molly Gibbs, Mercury News, 23 Jan. 2026
Of course, what nobody is really talking about is what would happen to this deal if the city should prove unable to meet all of its obligations in the future and the state of Illinois decides to allow some kind of insolvency for its biggest municipality.
—The Editorial Board, Chicago Tribune, 22 Jan. 2026
There was a lot of talk about the death of the department store as Saks Global limped along last year and then finally collapsed into insolvency late Tuesday.
—Evan Clark, Footwear News, 15 Jan. 2026
Both programs face long-term sustainability challenges, but broad reform remains politically difficult—even as insolvency looms.
—Thomas McInerney, Fortune, 19 Dec. 2025
See All Example Sentences for insolvency
Cite this Entry
“Insolvency.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/insolvency. Accessed 2 Feb. 2026.
Copy CitationKids 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.
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