Definition

Not able to pay debts or meet financial obligations; often used to describe a person or organization that is bankrupt.

Example

The company was declared insolvent after failing to pay its creditors for several months.

Conversation

Have you heard about that company going insolvent recently?

Yeah, it's a shame; they had such great products.

I know! It's surprising how quickly a business can become insolvent.

Absolutely, it makes you realize how important financial management is.

Synonyms & Antonyms

Definition

A person or entity that is unable to pay their debts and is declared bankrupt.

Example

The company was declared insolvent after failing to meet its financial obligations.

Conversation

Did you hear about that company going under recently?

Yeah, they declared themselves insolvent last week.

It's such a shame; many people lost their jobs.

Root Explanation

Insolvent → It is formed from "in-" (meaning not) and "solvere" (meaning to loosen or to pay). The word "insolvent" describes a state of not being able to pay debts or loosen financial obligations.

Memory Tip

Think of someone who is 'not' able to 'pay' their debts — 'in-' means not, and 'solvere' means to loosen or pay.

Visually Confused Words