- Insolvency is defined as the state of being bankrupt or unable to pay your debts.
When a business owes so much money it cannot pay it back, this is an example of insolvency.
insolvency definition by Webster's New World
insolvency definition by American Heritage Dictionary
noun pl. in·sol·ven·cies
- The condition of being insolvent.
- An instance of being insolvent.
insolvency - Investment & Finance Definition
The condition of being unable to pay debts that are due. An insolvent person or company is likely to end up in bankruptcy.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana. Used by arrangement with John Wiley & Sons, Inc.
insolvency - Legal Definition