Word
insolvency
Phoneticsin·sol·ven·cy, stress on the second syllable
US/ˌɪnˈsɑɫvənsi/
UK/ɪnsˈɒlvənsi/
Definitions
01inability to pay debts
C1 · Advanced Uncountable noun Law Technical · Formal
n. the state of not having enough money to pay your bills or debts when they are due.
n. the condition of being unable to pay debts in the ordinary course of business. Uncountable in this general sense.
“The small shop faced insolvency after three months of very low sales.”
“The firm was forced into insolvency after a series of bad investments left them unable to meet their monthly payroll obligations.”
Usage
Often used with the verbs 'face', 'avoid', or 'enter into'.
Pitfall
The company went into the insolvency.
The company went into insolvency.
When referring to the state of being insolvent, 'insolvency' is usually uncountable and does not take an article.
Synonyms
Antonyms
02debts exceeding assets
C1 · Advanced Uncountable noun Mathematics Technical · Academic
n. a financial state where the total amount of money you owe is more than the value of everything you own.
n. a state of negative net worth where total liabilities exceed the fair market value of all assets.
“Even though they had cash in the bank, their long-term debts caused technical insolvency.”
“Balance sheet insolvency occurs when the total value of a company's assets is less than the total amount of its liabilities.”
Synonyms
Real-World Examples
“Research has suggested that poorer outcomes tend to occur in insolvencies where the assets are acquired by connected parties paying via future instalments.” “Under EFL regulations, any club official who is the subject of two insolvency events is prevented from acting as a controlling owner or director.” Etymology
From insolvent + -cy.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Word family
NOUN
ADJECTIVE
Domain
- Exam level
- CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
- Frequency
- Occasional
- Level
- C1 · Advanced
- Updated
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