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Insolvent: meaning, definitions and examples

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insolvent

 

[ɪnˈsɒlvənt ]

Definitions

Context #1 | Adjective

financial

Unable to pay debts; bankrupt.

Synonyms

bankrupt, broke, penniless.

Which Synonym Should You Choose?

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Word Description / Examples
insolvent

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.
bankrupt

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.
broke

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.
penniless

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.

Examples of usage

  • The company became insolvent due to mismanagement of funds.
  • After losing his job, he was declared insolvent.
Context #2 | Adjective

legal

Not having enough assets to cover debts.

Synonyms

bankrupt, indebted, penurious.

Which Synonym Should You Choose?

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Word Description / Examples
insolvent

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
bankrupt

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
indebted

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
penurious

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

Examples of usage

  • The court declared him insolvent and ordered the liquidation of his assets.
  • The lawyer advised filing for insolvency to protect his client's remaining assets.

Interesting Facts

Etymology

  • The word comes from the Latin 'insolvens', meaning 'not paying' or 'not able to pay'.
  • It combines 'in-' (not) and 'solvere' (to pay or solve), indicating a failure to pay debts.

Law

  • Insolvency can lead to bankruptcy, which is a legal process for individuals or businesses unable to pay their debts.
  • Different jurisdictions have various laws governing insolvency, including arrangements for repayment or liquidation of assets.

Economics

  • An increase in insolvency rates can indicate economic distress, often seen during recessions or financial crises.
  • Companies that declare insolvency may undergo restructuring to become financially viable again or face liquidation if unsuccessful.

Psychology

  • Facing insolvency can lead to significant stress and anxiety, impacting mental health and overall well-being.
  • Individuals dealing with financial problems often experience feelings of shame and fear about their future.

Pop Culture

  • In films and literature, insolvency is often portrayed as a dramatic turning point, leading characters into moral dilemmas or personal growth.
  • Reality TV shows sometimes depict the lives of individuals or businesses affected by insolvency, exploring the challenges they face.

Translations

Translations of the word "insolvent" in other languages:

🇵🇹 insolvente

🇮🇳 दिवालिया

🇩🇪 zahlungsunfähig

🇮🇩 bangkrut

🇺🇦 неплатоспроможний

🇵🇱 niewypłacalny

🇯🇵 支払い不能

🇫🇷 insolvable

🇪🇸 insolvente

🇹🇷 iflas etmiş

🇰🇷 지불 불능

🇸🇦 مفلس

🇨🇿 insolventní

🇸🇰 insolventný

🇨🇳 破产

🇸🇮 insolventen

🇮🇸 gjaldþrota

🇰🇿 төлем қабілетсіз

🇬🇪 გადახდისუუნარო

🇦🇿 ödəmə qabiliyyətsiz

🇲🇽 insolvente

Word Frequency Rank

Position #9,337 indicates this is an advanced-level word. While not essential for basic communication, it will enhance your ability to understand and create more nuanced content.