Definitions for insolvency
ɪnˈsɒl vən siin·sol·ven·cy

Princeton's WordNetRate this definition:0.0 / 0 votes

1. insolvencynoun

   the lack of financial resources

WiktionaryRate this definition:0.0 / 0 votes

1. insolvencynoun

   The condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business; as, a merchant's insolvency.

2. insolvencynoun

   Insufficiency to discharge all debts of the owner; as, the insolvency of an estate.

3. insolvencynoun

   The condition of having more debts than assets.

Samuel Johnson's DictionaryRate this definition:0.0 / 0 votes

1. Insolvencynoun

   Inability to pay debts.

   Etymology: from insolvent.

WikipediaRate this definition:0.0 / 0 votes

1. Insolvency

   In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be insolvent. There are two forms: cash-flow insolvency and balance-sheet insolvency. Cash-flow insolvency is when a person or company has enough assets to pay what is owed, but does not have the appropriate form of payment. For example, a person may own a large house and a valuable car, but not have enough liquid assets to pay a debt when it falls due. Cash-flow insolvency can usually be resolved by negotiation. For example, the bill collector may wait until the car is sold and the debtor agrees to pay a penalty. Balance-sheet insolvency is when a person or company does not have enough assets to pay all of their debts. The person or company might enter bankruptcy, but not necessarily. Once a loss is accepted by all parties, negotiation is often able to resolve the situation without bankruptcy. A company that is balance-sheet insolvent may still have enough cash to pay its next bill on time. However, most laws will not let the company pay that bill unless it will directly help all their creditors. For example, an insolvent farmer may be allowed to hire people to help harvest the crop, because not harvesting and selling the crop would be even worse for his creditors. It has been suggested that the speaker or writer should either say technical insolvency or actual insolvency in order to always be clear – where technical insolvency is a synonym for balance sheet insolvency, which means that its liabilities are greater than its assets, and actual insolvency is a synonym for the first definition of insolvency ("Insolvency is the inability of a debtor to pay their debt."). While technical insolvency is a synonym for balance-sheet insolvency, cash-flow insolvency and actual insolvency are not synonyms. The term "cash-flow insolvent" carries a strong (but perhaps not absolute) connotation that the debtor is balance-sheet solvent, whereas the term "actually insolvent" does not.

ChatGPTRate this definition:0.0 / 0 votes

1. insolvency

   Insolvency is a financial state or condition in which an individual, company, or entity is unable to pay its debts as they fall due or when its liabilities exceed its assets. It often leads to bankruptcy proceedings or restructuring, wherein the debtor's assets may be sold off to pay creditors. Insolvency can be a result of poor cash management, reduction in cash inflow, excess expenditure, or even economic downturns and can hugely impact a company's or individual's financial stability.

Webster DictionaryRate this definition:0.0 / 0 votes

1. Insolvencynoun

   the condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business; as, a merchant's insolvency

2. Insolvencynoun

   insufficiency to discharge all debts of the owner; as, the insolvency of an estate

WikidataRate this definition:0.0 / 0 votes

1. Insolvency

   Insolvency is the inability of a debtor to pay their debt. Cash flow insolvency involves a lack of liquidity to pay debts as they fall due. Balance sheet insolvency involves having negative net assets—where liabilities exceed assets. Insolvency is not a synonym for bankruptcy, which is a determination of insolvency made by a court of law with resulting legal orders intended to resolve the insolvency. A business may be cash-flow insolvent but balance-sheet solvent if it holds market liquidity assets, particularly against short term debt that it cannot immediately realize if called upon to do so. Conversely, a business can have negative net assets showing on its balance sheet but still be cash-flow solvent if ongoing revenue is able to meet debt obligations, and thus avoid default: for instance, if it holds long term debt. Some large companies operate permanently in this state.

Matched Categories

1. • Financial Condition

How to pronounce insolvency?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say insolvency in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of insolvency in Chaldean Numerology is: 3

2. Pythagorean Numerology

   The numerical value of insolvency in Pythagorean Numerology is: 3

Examples of insolvency in a Sentence

1. Maya MacGuineas:

   The first thing we should do is stabilize our headed-towards-insolvency trust funds, most importantly, Social Security and Medicare.

2. Hillary Clinton:

   I'm now the nominee of the Democratic Party. I inherit nothing from the Democratic Party, it was bankrupt, it was on the verge of insolvency, its data was mediocre to poor, non-existent, wrong. I had to inject money into it -- The Republican committee -- to keep it going.

3. Dale Choi:

   Still, the likelihood has increased that SouthGobi could end up with facing a penalty of ~$17.5 million, which increases risk of insolvency for the company.

4. Finance Minister Natalia Yaresko:

   Despite the information campaign about the supposed insolvency of Ukraine, I declare Ukraine today is fulfilling all aspects of its external financial obligations.

5. Laurent Frings:

   I would take the quantum of TLAC debt that banks need to raise with a massive pinch of salt, the big delta is what countries will do in terms of their insolvency regimes, which can change those numbers dramatically. While we have a better understanding of what the UK, Germany and Italy will do, the big question is around the French banks, in particular BNP Paribas, and what will happen there.

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References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=insolvency
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Insolvency
3. ^ Samuel Johnson's Dictionary
   https://johnsonsdictionaryonline.com/views/search.php?term=insolvency
4. ^ Wikipedia
   https://en.wikipedia.org/wiki/Insolvency
5. ^ ChatGPT
   https://chat.openai.com
6. ^ Webster Dictionary
   https://www.merriam-webster.com/dictionary/insolvency
7. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=insolvency