insolvent
adj. C1 Advanced US //ˌɪnˈsɑɫvənt// UK //ɪnsˈɒlvənt// in·sol·vent
adj. unable to pay your debts because you do not have enough money. This is a legal word used when a person or company cannot meet their financial obligations.
adj. incapable of paying debts as they fall due. Often used in legal contexts to describe the state of a person or entity that has exhausted its assets and cannot meet its liabilities.
The company became insolvent after the market crashed.
The court declared the firm insolvent and appointed a liquidator to manage the sale of its remaining assets.
While a person may be bankrupt if they cannot pay their debts, a corporation is typically declared insolvent when its liabilities exceed its assets, triggering a formal liquidation process.
From in- + solvent.