become insolvent

USAGE SUMMARY

"become insolvent" is a correct and usable phrase in written English.
You can use it in any business or legal context to refer to the state of being unable to pay one's financial debts. For example: "The company was found to have become insolvent earlier this year."

✓ Grammatically correct

News & Media

Formal & Business

Academia

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

The company warned it might become insolvent.

The Economist

When liquidity vanishes, banks quickly become insolvent.

The Economist

In a protracted liquidity crisis, the solvent become insolvent.

The Economist

But without more tax revenue, the city could become insolvent.

The New York Times

In most industries, companies are, or should be, allowed to go under if they become insolvent.

The Economist

Italy said GOC contacts had suggested Cuba would become insolvent as early as 2011.

The Guardian

Under current projections, Social Security will become insolvent by 2037, as more baby boomers retire.

The New York Times

The system would still become insolvent in 2041, the same year as under the existing law.

The New York Times

Groundwater aquifers, like personal bank accounts, become insolvent when withdrawals exceed deposits.

The Guardian

She said the city could become insolvent if unbudgeted expenses rose to $100 million.

The New York Times

If they do conclude that Ireland might become insolvent, it becomes necessary for them to renegotiate the deal".

The New York Times

Expert writing Tips

Best practice

When discussing a company's financial state, use "become insolvent" to clearly indicate its inability to pay debts, differentiating it from temporary cash flow issues.

Common error

Avoid using "become insolvent" when a company is only facing short-term cash flow problems. Insolvency implies a more severe, long-term inability to meet financial obligations.

Linguistic Context

The phrase "become insolvent" functions as a verb phrase indicating a transition into a state of financial inability to pay debts. As Ludwig AI confirms, it's used in business and legal contexts to denote this specific condition. Ludwig's examples showcase its application across various entities, including companies, banks, and even nations.

Expression frequency: Very common

Frequent in

News & Media

69%

Formal & Business

17%

Academia

8%

Less common in

Science

3%

Wiki

3%

Reference

0%

Ludwig's WRAP-UP

The phrase "become insolvent" is a grammatically sound and frequently used term to describe the state of being unable to pay debts. As Ludwig AI confirms, it is suitable for business, legal, and general contexts. Analysis of numerous examples from Ludwig reveals its prevalence in News & Media, Formal & Business, and Academia, indicating a broad yet precise application. The phrase serves to clearly communicate financial distress, and while alternatives exist, understanding its specific meaning distinguishes it from terms like temporary illiquidity or simply "go bankrupt". Therefore, writers should carefully consider the context to ensure accurate and appropriate usage.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

go bankrupt

Focuses on the legal declaration of inability to pay debts.

face bankruptcy

Highlights the impending threat of financial ruin.

become bankrupt

Simple variation using "bankrupt" as an adjective.

fall into receivership

Emphasizes the state of being managed by a receiver due to insolvency.

be declared insolvent

Highlights the formal declaration of insolvency.

become illiquid

Focuses on the inability to convert assets into cash quickly.

default on debts

Stresses the failure to meet debt obligations.

enter liquidation

Focuses on the process of selling assets to pay off debts.

cease trading

Highlights the end of business operations due to financial issues.

fail financially

A general term indicating a lack of financial success.

FAQs

What does it mean for a company to "become insolvent"?

When a company "becomes insolvent", it means it can no longer pay its debts when they are due. This is a serious financial situation that can lead to bankruptcy or liquidation.

Are "become insolvent" and "go bankrupt" the same thing?

While related, they aren't exactly the same. "Becoming insolvent" means a company can't pay its debts. "Going bankrupt" is the legal process declared after insolvency.

What are some signs that a company might "become insolvent"?

Signs include declining revenues, increasing debt, difficulty paying suppliers, and a negative cash flow. These indicators suggest a company is struggling financially and may "become insolvent".

What can I say instead of ""become insolvent""?

Depending on the context, you can use alternatives like "go bankrupt", "default on debts", or "face bankruptcy". These phrases convey a similar meaning of financial distress.