declare insolvency

USAGE SUMMARY

The phrase "declare insolvency" is correct and commonly used in written English.
It is typically used when describing the act of formally stating one's inability to pay debts. Example: After months of struggling to keep their business afloat, the company was forced to declare insolvency and file for bankruptcy.

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

9 human-written examples

A frank appraisal of their losses would force some to raise billions in new capital or even to declare insolvency.

The New York Times

[C7.] Parmalat Considers Options Parmalat is expected to declare insolvency and seek legal protection from creditors before Christmas, a person close to the company said.

The New York Times

If one backer of his plan does not make a firm commitment this month, Mr. Bodson said he would declare insolvency immediately.

The New York Times

This partly lies behind its insistence that if a club does declare insolvency, it must exit via a CVA agreed by at least 75% of creditors.

The Guardian - Sport

LOS ANGELES — However disheartening the circumstances that lead a business to declare insolvency, we consumers tend to register the brightly colored signage heralding a going-out-of-business sale and think primarily one thing: I can get stuff dirt cheap.

The New York Times

But if the banks officially declare that no deal is in sight, KirchMedia will be required by law to declare insolvency and put itself under the supervision of a court-appointed administrator.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

50 human-written examples

The number of private providers declaring insolvency rose by 12 per cent last year with 67 companies going out of business.

Independent

The League pointed out that 40 clubs, over half its 72 members, have declared insolvency in recent years.

The Guardian - Sport

Over the last two years, Swissair declared insolvency, while management shake-ups hit companies like Credit Suisse, the No. 2 Swiss bank; Swiss Life, a leading insurer; and the machinery company ABB.

The New York Times

Because federal bankruptcy law required Enron's creditors to temporarily give back payments for the three months prior to its declared insolvency, the agency would have received payments from July through September, reducing its loss to roughly $213 million.

The New York Times

He declared insolvency in 1931 and the ownership of the estate passed into the hands of a new company, which eventually succeeded in getting a bill through parliament to ensure the residents' right to a partial control over access to the roads that led to their homes.

The Guardian - Sport

Expert writing Tips

Best practice

When using "declare insolvency", clearly specify the entity making the declaration (e.g., 'The company declared insolvency'). This adds clarity and avoids ambiguity.

Common error

Avoid using "declare bankruptcy" and "declare insolvency" interchangeably. While related, "insolvency" is a state of being unable to pay debts, while "bankruptcy" is a legal status formally recognized by a court.

Linguistic Context

The phrase "declare insolvency" functions as a verb phrase, where "declare" is the verb indicating the action of formally announcing, and "insolvency" is the noun representing the state of being unable to pay debts. Ludwig provides examples illustrating its use in various contexts.

Expression frequency: Uncommon

Frequent in

News & Media

68%

Science

16%

Formal & Business

16%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "declare insolvency" is a formal way of announcing an inability to pay debts. As Ludwig AI confirms, it's grammatically correct and used in contexts like news, business, and legal reporting. While less common than alternatives like "file for bankruptcy", it's important to use "declare insolvency" when specifically emphasizing the act of making the declaration. Be mindful of the distinction between insolvency and bankruptcy, as the latter is a legal status. Overall, understanding its function and register ensures accurate and effective communication in financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

file for bankruptcy

Implies a formal legal process initiated to address insolvency, focusing on the action taken.

announce bankruptcy

Focuses on the act of making a public statement about being bankrupt.

seek creditor protection

Highlights the legal measures taken to shield assets from creditors when facing insolvency.

go into liquidation

Emphasizes the process of selling assets to repay debts, signifying the end of business operations due to insolvency.

enter administration

Suggests placing a company under the control of administrators to manage its insolvency.

become insolvent

States the condition of being unable to pay debts, a prerequisite for declaring insolvency.

confess bankruptcy

Implies admitting to a state of bankruptcy.

report financial failure

Highlights the act of informing about financial distress and inability to meet obligations.

reveal financial collapse

Focuses on disclosing the complete breakdown of financial stability.

notify creditors of inability to pay

Directly addresses the communication of financial distress to those owed money.

FAQs

What's the difference between "declare insolvency" and "file for bankruptcy"?

"Declare insolvency" is the act of stating that one cannot pay debts, while "filing for bankruptcy" is the legal process initiated after that declaration.

When should I use "declare insolvency" in a sentence?

Use "declare insolvency" when you want to emphasize the formal announcement of a company or individual's inability to pay their debts. For example: 'Due to heavy losses, the firm was forced to declare insolvency'.

What are some alternative ways to say "declare insolvency"?

You can use phrases like "announce bankruptcy", "seek creditor protection", or "go into liquidation" depending on the specific context.

What does it mean for a company to "declare insolvency"?

When a company "declare insolvency", it means that the company is stating it can no longer meet its financial obligations to its creditors and may be initiating legal proceedings to address the situation.