insolvency


insolvency
The lack of adequate capital. The condition that exists when the amount of losses exceeds the amount of capital.
See solvency and solvency risk. American Banker Glossary
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This occurs when individuals or businesses do not have enough assets to cover their debts, or are unable to pay their debts when the debts become due. HM Customs & Revenue Glossary
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The inability of a person (or a company) to settle debts. London Stock Exchange Glossary

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insolvency in‧sol‧ven‧cy [ɪnˈsɒlvənsi ǁ -ˈsɑːl-] noun insolvencies PLURALFORM [countable, uncountable] ACCOUNTING LAW
a situation in which a person or a company is insolvent:

• Higher payments could force some banks into insolvency.

• The number of insolvencies in the real estate sector more than tripled last year.

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insolvency UK US /ɪnˈsɒlvənsi/ noun [C or U] (plural insolvencies)
FINANCE, ACCOUNTING, LAW a situation in which a person or company does not have enough money to pay debts, buy goods, etc.: »

The company warned that it may have to seek insolvency proceedings, which would see creditors recover only a small amount of their liabilities.

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The building owners agreed to contribute to the union's health plan to rescue it from insolvency.

go into/file for/face insolvency »

The decision to file for insolvency rather than bankruptcy provides protection against creditors.

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to stave off/avoid insolvency

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an insolvency expert/specialist/lawyer


Financial and business terms. 2012.

Synonyms:

Look at other dictionaries:

  • Insolvency — means the inability to pay one s debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts. Business insolvency is defined in two different ways: Cash flow insolvency Unable… …   Wikipedia

  • insolvency — in·sol·ven·cy /in säl vən sē/ n pl cies 1: the fact or state of being insolvent compare bankruptcy 2: insufficiency (as of an estate) to discharge all enforceable debts ◇ Insolvency matters are covered under the Bankruptcy Code. Merriam …   Law dictionary

  • Insolvency — In*sol ven*cy, n.; pl. {Insolvencies}. (Law) (a) The condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and… …   The Collaborative International Dictionary of English

  • insolvency — (see also bankruptcy and failure) another term used to describe a firm that is failing; generally it means that a firm s liabilities exceed its assets or that it is unable to satisfy its obligations as they come due. (Common Bankruptcy Terms)… …   Glossary of Bankruptcy

  • insolvency — 1660s; see INSOLVENT (Cf. insolvent) + CY (Cf. cy). Insolvence (1793) is rare …   Etymology dictionary

  • insolvency — [in säl′vən sē] n. pl. insolvencies the fact or condition of being insolvent; bankruptcy …   English World dictionary

  • insolvency — /in sol veuhn see/, n. the condition of being insolvent; bankruptcy. [1650 60; INSOLV(ENT) + ENCY] * * * Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In …   Universalium

  • insolvency — The insufficiency of the entire property and assets of an individual to pay his debts. 29 Am J Rev ed Insolv § 2. In a practical commercial sense, the inability of a person to pay his debts as they become due in the ordinary course of his… …   Ballentine's law dictionary

  • Insolvency — When an individual or organization can no longer meet its financial obligations with its lender or lenders as debts become due. Insolvency can lead to insolvency proceedings, in which legal action will be taken against the insolvent entity, and… …   Investment dictionary

  • insolvency — The condition of a person or business that is insolvent; inability or lack of means to pay debts. Such a relative condition of a person s or entity s assets and liabilities that the former, if all made immediately available, would not be… …   Black's law dictionary