insolvency

Upper-Intermediate (B2)

IPA: /ɪnˈsɒlvənsi/

KK: /ɪnˈsɒlvənsi/

noun

Definition

A situation where a person or organization cannot pay their debts.

Example

The company declared insolvency after failing to meet its financial obligations.

Conversation

Did you hear about the company's insolvency?

Yeah, it's such a shame; they had so much potential.

I know! I wonder what caused their insolvency in the first place.

Maybe poor management decisions or just bad luck with the market.

Synonyms & Antonyms

Synonyms

bankruptcy

default

failure

Antonyms

solvency

wealth

prosperity

Root Explanation

Insolvency → It is formed from "in-" (meaning not) and "solvency" (from Latin "solvens", meaning to loosen or dissolve). The word refers to the state of being unable to pay debts, or not being able to loosen oneself from financial obligations.

Memory Tip

Think of 'not' ('in-') being able to 'loosen' ('solvency') your financial burdens — that's what insolvency means.

Visually Confused Words