insolvency
UK: ɪnˈsɒlvənsi | US: ɪnˈsɑːlvənsi
n. the inability to pay debts when they are due
n. the financial condition of being bankrupt or lacking sufficient assets to cover liabilities
insolvency = in<not> + solv<loosen, pay> + ency<noun suffix>
- in: A Latin prefix meaning "not" or "without."
- solv: From Latin solvere ("to loosen, release, pay"), reflecting the idea of resolving debts.
- ency: A noun-forming suffix indicating a state or condition (e.g., "agency," "dependency").
Etymology Origin:
The word traces back to Latin insolventia, combining in- (negation) + solvere ("to pay"). Historically, solvere referred to untying or releasing obligations, metaphorically extended to settling debts. Over time, insolvency emerged in English (17th century) to describe the permanent state of being unable to "loosen" (resolve) financial obligations.
The company filed for bankruptcy due to insolvency.
Prolonged insolvency can lead to liquidation of assets.
The law protects creditors when debtors face insolvency.
His reckless spending resulted in personal insolvency.
The government intervened to prevent the bank’s insolvency.