insolvency

/ɪnˈsɑlvənsi/

Other forms: insolvencies

Insolvency is when someone is completely out of money. A company's insolvency means that it isn't able to pay its workers and may have to go out of business.

A family's insolvency is a frightening thing — it might result in the loss of their home, for example, since they can't afford to pay their bills. The noun insolvency is more often used to describe the financial troubles of a business or other organization. If your tennis club faces insolvency, it may need to seek help from investors or close altogether. The adjective insolvent means "unable to pay one's debts," combining the roots in, "not," and solventem, "paying."

Definitions of insolvency

1. noun

   the lack of financial resources
   antonyms:

   solvency

   the ability to meet maturing obligations as they come due

   types:

   bankruptcy, failure

   inability to discharge all your debts as they come due

   type of:

   financial condition

   the condition of (corporate or personal) finances