Meaning & use
insolvency
Last updated
Meanings
noununcountablebusinessfinancelegal
The state of not having enough money to pay what you owe.
Grammar: No plural in this sense; use it like *poverty* or *failure*.
Patterns
- face insolvency
- avoid insolvency
- be on the brink of insolvency
The company was declared insolvent after months of losses.
Many small businesses face insolvency when cash flow dries up.
The report warned that the fund was close to insolvency.
nouncountablelegalbusiness
A legal procedure for dealing with a person or company that cannot pay its debts.
Grammar: Countable when referring to a specific case or process; often used with *file for* or *declare*.
Patterns
- file for insolvency
- declare insolvency
- go through insolvency
The firm filed for insolvency last week.
She is an expert in corporate insolvency law.
The court will decide whether to accept the insolvency.
Word forms
| plural | insolvencies |
|---|
Common combinations
- corporate insolvency
- Corporate insolvency rates rose during the recession.
- insolvency proceedings
- The bank started insolvency proceedings against the borrower.
- insolvency practitioner
- An insolvency practitioner was appointed to manage the assets.
- face insolvency
- Without new investment, the airline will face insolvency.
- on the verge of insolvency
- The retailer was on the verge of insolvency for months.
Synonyms and how they differ
- bankruptcy
- Use bankruptcy for the official legal status or case; insolvency can describe the financial condition before any legal step.
- failure
- Failure is broader and can mean any collapse; insolvency specifically means inability to pay debts.
Opposites
Word family
Commonly confused: insolvency or insolence?
insolvency vs insolence
Insolence means rude, disrespectful behavior; insolvency is about money and debt.
Practice
The company could not pay its suppliers and was forced to declare ______.
Choose one answer.
Insolvency is the noun for the state of being unable to pay debts, and it fits after *declare*. *Insolvent* is the adjective, so you would say *declare itself insolvent*; *solvency* is the opposite; *insolence* is rudeness.
Make it your own
Write a sentence using “insolvency”, then check it and compare it with the examples above.