declared insolvency

USAGE SUMMARY

The phrase "declared insolvency" is correct and usable in written English.
It can be used in legal or financial contexts to indicate that an individual or organization has officially announced their inability to pay debts. Example: "After months of financial struggles, the company finally declared insolvency, leading to a restructuring process."

✓ Grammatically correct

News & Media

Academia

Science

Human-verified examples from authoritative sources

Exact Expressions

11 human-written examples

The highway construction company declared insolvency earlier this year.

Yale University

It declared insolvency again in July after a review revealed it had understated the extent of its financial problems.

The Guardian

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

The Guardian - Sport

It declared insolvency again in July after a review revealed it had understated the extent of its financial problems and faced a £70m deficit.

The Guardian

In spring 2002, gas bottle manufacturer Welz Gas Cylinder, based near Berlin, declared insolvency and was taken over by a Chinese trading company for Chinese household and industrial goods, Huapeng Trading.

Yale University

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

Human-verified similar examples from authoritative sources

Similar Expressions

49 human-written examples

The plan enables Postmedia to avoid declaring insolvency and filing for creditor protection.

The Guardian

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

Independent

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

The New York Times

Comparisons are hard to make with the early 1990s recession when bankruptcies quadrupled to 32,000, because 10 years ago the Labour government made it much easier to declare insolvency.

The Guardian - Business

[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

Expert writing Tips

Best practice

When using "declared insolvency", ensure you specify who made the declaration (e.g., "The company declared insolvency").

Common error

While related, insolvency (being unable to pay debts) is a state, while bankruptcy is a legal proceeding. Use "declared bankruptcy" if referring to the legal process and "became insolvent" if describing the financial state.

Linguistic Context

The phrase "declared insolvency" functions as a statement of financial status, typically used as part of a narrative or report. It describes the action of formally announcing the inability to pay debts. Ludwig AI confirms the correctness of this phrase.

Expression frequency: Common

Frequent in

News & Media

50%

Academia

20%

Science

10%

Less common in

Encyclopedias

10%

Wiki

10%

Formal & Business

0%

Ludwig's WRAP-UP

The phrase "declared insolvency" is a grammatically correct and commonly used expression to indicate that an entity has formally announced its inability to pay its debts. It is most often found in news reports, academic papers, and scientific publications. As Ludwig AI confirms, the phrase is used correctly across numerous reliable sources. While synonyms such as "filed for bankruptcy" or "became insolvent" exist, "declared insolvency" specifically highlights the act of making the announcement. Therefore, when using "declared insolvency", writers should ensure they are accurately representing the formal declaration of a financial state.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Declared bankruptcy

Simply switches the noun and adjective around, so it's interchangeable with the original phrase.

Filed for bankruptcy

This phrase is a common synonym, emphasizing the legal process initiated when a company or individual can't pay their debts.

Announced bankruptcy

This alternative highlights the public announcement of the insolvency, rather than the legal procedure.

Filed a petition for insolvency

Highlights the initial legal action taken when seeking insolvency.

Entered into administration

Refers to a formal insolvency procedure, common in the UK, where administrators take control of the company.

Became insolvent

This option focuses on the state of being unable to pay debts, rather than the act of declaring it.

Entered receivership

Indicates a legal process where a receiver is appointed to manage the assets of an insolvent entity.

Ceased trading due to insolvency

Emphasizes the direct consequence of insolvency, which is the cessation of business operations.

Liquidated assets

Implies the business has sold off its assets to pay off debts.

Wound up operations

This indicates a complete termination of a business, often due to financial difficulties.

FAQs

What's the difference between declaring insolvency and declaring bankruptcy?

Declaring insolvency is a statement that an entity is unable to pay its debts. Declaring bankruptcy is the legal process that follows, seeking protection from creditors under bankruptcy laws. Often, to declare bankruptcy, one first "declares insolvency".

What are some alternatives to the phrase "declared insolvency"?

You can use alternatives such as "filed for bankruptcy", "announced bankruptcy", or "became insolvent", depending on the context.

In what situations is it appropriate to use the phrase "declared insolvency"?

The phrase "declared insolvency" is appropriate in formal and legal contexts when discussing the financial status of a company, organization, or individual who is unable to meet their debt obligations.

What legal implications arise after an entity has "declared insolvency"?

After an entity has "declared insolvency", it often leads to legal proceedings such as bankruptcy, receivership, or administration, where assets may be liquidated to pay off creditors, and the entity may undergo restructuring.