insolvent
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.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.