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

America’s next president, and the class of senators elected this November, seem all but guaranteed to face the politically perilous task of addressing Social Security’s imminent insolvency before the end of their term. —Ben Ritz, Forbes.com, 11 June 2026

Ahead of a potential Social Security insolvency date, recipients and retirees should consider making certain money moves right now. —Matt Richardson, CBS News, 10 June 2026

New tax rules instituted last year have led many of the ultra-wealthy to leave London; many top collectors appear to have chosen Art Basel Paris over recent editions of Frieze London; and, to top it off, stalwart gallery Stephen Friedman closed and entered insolvency proceedings earlier this year. —George Nelson, ARTnews.com, 10 June 2026

Elysian Film Group Distribution, which launched in 2020 with backing from CAA, is now the subject of a formal insolvency process. —Jake Kanter, Deadline, 9 June 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.