insolvency

Definitions

Accounting

  • noun the fact of not being able to pay debts.

Economics

  • noun the situation of not being able to pay debts when they are due. A company is insolvent when its liabilities are higher than its assets: if this happens it must cease trading. Note that insolvency is a general term, but is usually applied to companies; individuals or partners are usually described as bankrupt once they have been declared so by a court.

Law

  • noun the state of not being able to pay debts
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