insolvency

noun

in·​sol·​ven·​cy (ˌ)in-ˈsäl-vən(t)-sē How to pronounce insolvency (audio)
-ˈsȯl-
: the fact or state of being insolvent : inability to pay debts

Examples of insolvency in a Sentence

unless the economy improves, many resorts in the area face insolvency
Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Social Security faces insolvency by 2032, forcing policymakers to weigh politically fraught options like raising the retirement age, raising taxes, or adjusting benefit caps. Eleanor Pringle, Fortune, 19 Sep. 2025 Jefferson County Public Schools faces potential insolvency within 13 months if major budget cuts are not made. Krista Johnson, Louisville Courier Journal, 17 Sep. 2025 Meanwhile, many of the newer entrants to the market are lightly regulated start-ups that may not pay into the state insolvency fund, according to Bach. Andrea Riquier, USA Today, 29 Aug. 2025 The restructuring helped FedNat avoid insolvency. Ron Hurtibise, Sun Sentinel, 21 Aug. 2025 See All Example Sentences for insolvency

Word History

First Known Use

1660, in the meaning defined above

Time Traveler
The first known use of insolvency was in 1660

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Cite this Entry

“Insolvency.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/insolvency. Accessed 20 Sep. 2025.

Kids Definition

insolvency

noun
in·​sol·​ven·​cy (ˈ)in-ˈsäl-vən-sē How to pronounce insolvency (audio)
plural insolvencies
: the quality or state of being insolvent

Legal Definition

insolvency

noun
in·​sol·​ven·​cy in-ˈsäl-vən-sē How to pronounce insolvency (audio)
plural insolvencies
1
: the fact or state of being insolvent compare bankruptcy
2
: insufficiency (as of an estate) to discharge all enforceable debts

Note: Insolvency matters are covered under the Bankruptcy Code.

More from Merriam-Webster on insolvency

Last Updated: - Updated example sentences
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