insolvency

Meanings

1. 1
   noun

   the state of being unable to pay debts when they become due

   A sudden loss of credit pushed the company into insolvency.

2. 2
   noun

   the financial condition in which liabilities exceed the value of assets

   The audit revealed balance-sheet insolvency even though the firm still had cash on hand.

From insolvent + -cy. Insolvent comes from Latin in- ('not') + solvere ('to loosen, discharge, pay'), so insolvency is literally the condition of not being able to discharge one's obligations.

Topics