Insolvent: meaning, definitions and examples

Used primarily in formal or legal settings to describe an individual's or organization's inability to pay debts.

• The company was declared insolvent and had to cease operations.
• After reviewing the financial statements, we determined that the debtor is insolvent.

Typically used in both formal and informal contexts to describe a legal status when someone legally declares their inability to repay debts.

• The retailer filed for bankruptcy last month.
• After the failed investment, he found himself bankrupt.

Informal and common in everyday conversation to describe temporarily having no money or being in financial difficulty.

• I can't go out tonight; I'm broke until payday.
• She was broke after paying off her student loans.

Used to describe someone who has no money at all, often with emphasis on desperation. It can be slightly more dramatic.

• After losing his job, he was left penniless.
• The penniless artist struggled to fund his work.

This word is often used in formal or legal contexts when an individual or organization cannot pay their debts and their liabilities exceed their assets.

• The company is insolvent and is unable to meet its financial obligations
• After a thorough examination, the court declared the small business insolvent

This word is commonly used when an individual or company has officially declared an inability to pay off debts, often resulting in legal proceedings. It carries a formal and sometimes negative connotation.

• She filed for bankruptcy after her business failed
• The retail giant went bankrupt due to poor financial management

This word is used to describe a situation where someone owes money or favors to another. It may not necessarily imply that the person cannot pay back what they owe.

• John feels indebted to his friend for helping him during hard times
• The company is highly indebted but still operational

This word is used to describe someone who is extremely poor or unwilling to spend money. It has a somewhat negative connotation and is less commonly used in everyday conversation.

• The penurious artist struggled to buy even basic supplies
• Despite his penurious state, he refused to ask for help