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insolvency

American  
[in-sol-vuhn-see] / ɪnˈsɒl vən si /

noun

  1. the condition of being insolvent; bankruptcy.


Etymology

Origin of insolvency

First recorded in 1650–60; insolv(ent) + -ency

Compare meaning

How does insolvency compare to similar and commonly confused words? Explore the most common comparisons:

Explanation

Insolvency is when someone is completely out of money. A company's insolvency means that it isn't able to pay its workers and may have to go out of business. A family's insolvency is a frightening thing — it might result in the loss of their home, for example, since they can't afford to pay their bills. The noun insolvency is more often used to describe the financial troubles of a business or other organization. If your tennis club faces insolvency, it may need to seek help from investors or close altogether. The adjective insolvent means "unable to pay one's debts," combining the roots in, "not," and solventem, "paying."

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Vocabulary lists containing insolvency

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

“Director disqualifications exist to protect the public from those who have demonstrated they are unfit to run companies,” said Duncan Beach, head of the Insolvency Service.

From The Wall Street Journal • Jun. 4, 2026

Thursday’s ban by the Insolvency Service revolves around one specific allegation: that Greensill made three firms in his group enter into a series of transactions with U.S. construction company Katerra in late 2020.

From The Wall Street Journal • Jun. 4, 2026

The Insolvency Service banned Greensill for breaching his legal duty as a director, citing transactions that caused a Credit Suisse fund a $440 million loss.

From The Wall Street Journal • Jun. 4, 2026

The Insolvency Service, a branch of the Department of Business and Trade, ran the company and underwrote its losses after it collapsed in 2019.

From BBC • May 13, 2026

Immediately after leaving The Kings Bench Prison, By the benefit of the Act of Insolvency; In consequence of which He registered his Kingdom of Corsica For the use of his Creditors!

From Curious Epitaphs by Various

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