Words / C1

in-SOLV-uh-nsee/ɪnˈsɒlvənsi/

Insolvency is the state of being unable to pay debts when they fall due: face insolvency, an insolvency process. Bankruptcy is a related legal path, not always the same; a handsome crest does not recapitalise a payroll hole.

Meaning

The state of being unable to pay debts.

Examples

• “Insolvency of the badge contractor is a named risk; a smiling stall is not a credit check.”
• “A crest does not cure insolvency on the invigilator payroll.”
• “Bankruptcy is the close legal cousin. Liquidation is a process twin. A crest is branding. An aged-creditor line is a file. Pay the hours, or open the process; do not print a richer letterhead.”

Good to know

Inability to pay debts when due. Close: bankruptcy. A crest ≠ a payroll.

Near in meaning

bankruptcy, liquidation

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