insolvency

/in'sɔlvənsi/

Thân thiện

The company declared insolvency and closed its doors.

Definition

1. Noun:
   • The state of being unable to pay one's debts as they fall due: Insolvency refers to a financial condition where an individual or entity's liabilities exceed their assets, or they cannot meet their debt obligations when they are due.
   • The condition of financial failure or bankruptcy: It describes a situation of financial collapse, often leading to formal legal proceedings.

Usage Examples

• Noun:
  • The company declared insolvency after failing to secure a new loan.
  • Personal insolvency can result from prolonged unemployment or medical bills.
  • The court will appoint a trustee to manage the estate during insolvency.

Advanced Usage

• "Technical insolvency": A specific condition where an entity's liabilities exceed its assets on a balance sheet, regardless of cash flow.
  • The firm faced technical insolvency but continued operations due to strong cash reserves.
• "Insolvency proceedings": The formal legal process initiated when an individual or company is declared insolvent.
  • The creditors voted to commence insolvency proceedings against the debtor.

Variants and Related Words

• Insolvent (adj): Describing the state of being unable to pay debts.
  • The insolvent trader was forced to close his business.
• Insolvency practitioner (n): A licensed professional who administers insolvency cases.
  • The insolvency practitioner will liquidate the company's assets.

Synonyms

• Bankruptcy: The legal status of a person or entity that is unable to repay debts.
• Financial failure: A broad term for the collapse of a business or person's finances.
• Default: Failure to repay a loan according to the agreed terms.

Antonyms

• Solvency: The state of having enough assets to cover all liabilities.
• Financial stability: A secure and sound financial condition.

Related Phrases

• "To be driven into insolvency": To be forced into a state of being unable to pay debts.
  • The recession drove many small businesses into insolvency.
• "Insolvency law": The body of law dealing with the rights of debtors and creditors.
  • She specializes in corporate insolvency law.

Học thuật

Noun

1. the lack of financial resources