noun
- the state of being unable to pay debts when they are due
Usage: legal; financial
Examples
- The company filed for bankruptcy due to insolvency.
- Rising debt levels pushed the business toward insolvency.
- The court declared the estate in a state of insolvency.
- Poor management led to the firm’s insolvency within two years.
- Creditors often accept reduced payments to avoid complete insolvency.
- The lawyer specialized in cases involving corporate insolvency.