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Definition of insolvency

insolvency

/ɪnˈsɒlvənsi/
in · sol · ven · cy
Adverb:insolvently
•
Plural:insolvencies
•
Adjective:insolvent
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insolvency Lexical Profile

insolvency Game Scores & Validity

• noun

1

The financial state of being unable to pay money owed to lenders or creditors on time, or of having total liabilities that exceed total assets.

Example

"The retail chain faced imminent insolvency after several quarters of declining sales and mounting debt."

Synonyms
View all synonyms for insolvency
Antonyms
View all antonyms for insolvency

Word Nuance & Usage

While often used interchangeably in casual speech, 'insolvency' is a financial state of being unable to pay debts as they fall due, whereas 'bankruptcy' is a formal legal declaration and court-supervised process resulting from that state.

• Rhymes for insolvency

• Nearby Words

insolently
insoluble
insolvable
insolvency
insolvent
insomnia
insomniac

Word Origin & Etymology

Formed in the early 17th century from 'insolvent', which derives from the Latin prefix 'in-' (not) and 'solventem', the present participle of 'solvere' (to loosen, release, or pay a debt).

Cite this Entry

Wordmom. (2026). Definition of Insolvency. In Wordmom Dictionary. Retrieved Nov 5, 2026, from https://wordmom.com/dictionary/insolvency
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