Insolvency

/ɪnˈsɒlvənsi/

Meaning & Definition

noun

The state of being unable to pay debts owed.

The company declared insolvency after failing to meet its financial obligations.

The financial condition of an individual or organization that cannot pay off its debts.

Many businesses face insolvency during economic downturns.

A legal process involving the redistribution of assets to repay creditors.

After declaring insolvency, the firm underwent a restructuring process to settle its debts.

The inability to satisfy the claims of creditors in full.

His insolvency became evident when multiple creditors began to pursue legal action.

From Latin 'insolventem', meaning 'not able to pay debts'

declaration of insolvency

A formal statement confirming that an individual or business cannot pay its debts.

insolvency proceedings

Legal processes related to managing and settling the debts of an insolvent entity.

insolvency practitioner

A qualified professional who manages the affairs of insolvent individuals or businesses.

bankruptcy

A legal status of a person or entity that cannot repay the debts it owes.

liquidation

The process of converting assets into cash to pay off debts.

creditor

An entity that has a claim against another, often in the form of loans or payment due.

going bust

After several bad quarters, the startup is going bust.

broke

He's so broke he can't even afford to pay his rent.