noun

insolvency

insolvency, bankruptcy

The company is facing insolvency.

The company is facing insolvency.

High debts led to the firm's insolvency.

High debts led to the firm's insolvency.

to face insolvency to be in a situation where one cannot pay debts The company is facing insolvency.

to declare insolvency to officially state that one cannot pay debts They had to declare insolvency last year.

Synonyms: bankruptcy, failure; Antonyms: solvency, liquidity

From Latin 'in-' (not) + 'solvere' (to pay). The state of 'not being able to pay'.

Think 'in-solvent', meaning 'not solvent'. If you are financially solvent, you can pay your debts. Insolvency is the opposite state.

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