insolvent

USAGE SUMMARY

The phrase "insolvent" is correct and usable in written English.
It is typically used in financial contexts to describe a person or entity that is unable to pay debts as they come due. Example: "The company was declared insolvent after failing to meet its financial obligations for several consecutive months."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

(And whether a central bank is responsible or not, its decision to provide unlimited liquidity can bail insolvent institutions out of insolvency, potentially leaving the economy as a whole better off provided that moral hazard concerns are subsequently addressed).It is entirely understandable that central banks maintain a close interest in fiscal policy.

The Economist

It's not, after all, as if the U.S. economy has never had to deal with big insolvent banks before.

The Economist

On Tuesday, he claimed the company, which went bust in 1990, was not insolvent.

The Guardian - Business

Anglo Irish was effectively insolvent when the bonuses were paid.

The Guardian - Business

This is the man who revealed that Northern Rock, one of the biggest banks in the country, was technically insolvent, and that HBOS was in such peril it needed an emergency rescue from Lloyds.

The Guardian

Before he fled the UK, Nadir, who had been declared insolvent, had become notorious for frustrating the efforts of his bankruptcy trustees.

The Guardian - Business

Facing a 48-hour deadline to produce a list of reforms that could make or break his insolvent country's future, the anti-austerity leader admitted the honeymoon was over for a government that had sent ripples of hope through Europe.

The Guardian

They will be allowed to run their charges much like an administrator does an insolvent company.Regulators also intend to impose losses from a bank failure not only on shareholders, but on bondholders too.

The Economist

Lastly, the programme should include a formula, similar to Sweden's, that adjusts the benefit rate and payroll tax if the system becomes insolvent.

The Economist

Many of the banks that benefited were insolvent at the time.

The Economist

Most of the country's main regional theatres are technically insolvent, despite the subsidies they receive.

The Economist

Expert writing Tips

Best practice

When using "insolvent", ensure the context clearly relates to financial inability to pay debts. Consider using synonyms like "bankrupt" or "financially ruined" for emphasis or variety.

Common error

Avoid confusing illiquidity (temporary lack of cash) with insolvency (assets less than liabilities). A company can be illiquid but still solvent if it has valuable assets. Insolvency is a more severe and fundamental problem.

Linguistic Context

The primary grammatical function of "insolvent" is as an adjective describing a noun (person, company, etc.) that is unable to pay its debts. As Ludwig AI suggests, it denotes a state of financial distress, exemplified by phrases such as ""insolvent" debtor" or ""insolvent" banks".

Expression frequency: Very common

Frequent in

News & Media

68%

Formal & Business

29%

Science

3%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "insolvent" is a grammatically correct adjective used to describe an inability to pay debts. According to Ludwig AI, it's typically used in financial contexts, with synonyms like "bankrupt" offering similar meanings. It's crucial to differentiate "insolvency" from "illiquidity". The term is frequently found in news and business contexts, indicating its relevance in discussions about finance and economics. Remember to use "insolvent" accurately to avoid misrepresenting temporary financial difficulties.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

bankrupt

A more common and direct synonym indicating legal declaration of inability to pay debts.

unable to pay debts

A straightforward description of the state of not being able to meet financial obligations.

unable to meet financial obligations

Similar to "unable to pay debts" but more formal.

financially ruined

Emphasizes the devastating financial consequences of being unable to pay debts.

in a state of bankruptcy

Highlights the condition of undergoing bankruptcy proceedings.

in arrears

Focuses on the aspect of being behind on payments.

defaulting on obligations

Emphasizes the failure to meet contractual financial duties.

experiencing financial distress

A more general term indicating severe financial problems.

facing foreclosure

Specifically refers to the risk of losing property due to unpaid debts.

in receivership

Indicates that a receiver has been appointed to manage assets due to financial difficulties.

FAQs

How is "insolvent" typically used in a sentence?

"Insolvent" is often used to describe companies, individuals, or even countries that cannot pay their debts when due. For instance, "The company was declared "insolvent" after failing to meet its financial obligations."

What are some alternatives to using the word "insolvent"?

Depending on the context, you can use alternatives like "bankrupt", "financially ruined", or "unable to pay debts".

What's the difference between "insolvent" and "illiquid"?

"Insolvent" means that liabilities exceed assets, indicating a fundamental inability to pay debts. "Illiquid", on the other hand, means that an entity has difficulty converting assets into cash quickly, even if its assets exceed liabilities. A company can be "illiquid" without being "insolvent".

When is it appropriate to use the term "insolvent"?

Use "insolvent" when accurately describing a situation where an entity's liabilities are greater than its assets, and it cannot meet its debt obligations. Avoid using it loosely for temporary financial difficulties.