# insolvent

/ˌɪnˈsɑɫvənt/ (US) · /ɪnsˈɒlvənt/ (UK) · CEFR C1 · Adjective

Source: https://englishreference.com/word/insolvent
Updated: 2026-05-20

## Definition

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.

For teachers: 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.

## Examples

- 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.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.