ENGLISH
REFERENCE

insolvency

n. C / U
C1 Advanced US //ˌɪnˈsɑɫvənsi// UK //ɪnsˈɒlvənsi// in·sol·ven·cy

n. the state of being unable to pay your debts. It happens when a person or company does not have enough money or assets to cover what they owe.

n. the state of being unable to pay debts as they fall due or having liabilities that exceed total assets.


SIMPLE

The company filed for insolvency after a year of heavy losses.

CONTEXTUAL

The sudden drop in consumer spending pushed several high-street retailers into insolvency before the end of the quarter.

COMPLEX

Legal experts were called in to determine whether the firm's insolvency was a result of temporary cash-flow issues or a fundamental collapse of its business model.

Antonyms
Origin

From insolvent + -cy.

Usage

Uncountable when referring to the general state; countable when referring to specific legal cases or instances.

Pitfall

The company is insolvency.The company is insolvent.Learners often use the noun 'insolvency' where the adjective 'insolvent' is required to describe a subject.

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