insolvency
a situation in which a person or organization cannot pay what they owe
The state of being unable to pay debts when they are due, or of having liabilities greater than assets.
one case of a person or company being unable to pay its debts
An individual case in which a person or organization becomes insolvent, especially a business failure recorded in official or industry statistics.
- Base: insolvency
- Plural: insolvencies, insolvency
balance-sheet insolvency
1liabilities exceed assets
when what a person or company owes is greater than what it owns
- The audit suggested balance-sheet insolvency because the group's liabilities exceeded its assets.
- A company may show signs of balance-sheet insolvency long before it runs out of cash.
- The court considered evidence of balance-sheet insolvency.
- Balance-sheet insolvency means debts are bigger than assets.
- The company was balance-sheet insolvent.
cash-flow insolvency
1no cash for debts
when there is not enough available money to pay bills on time
- The company had valuable equipment but suffered cash-flow insolvency when customers paid late.
- A seasonal business can face cash-flow insolvency even when it is profitable on paper.
- The directors monitored cash-flow insolvency risk weekly.
- The company had assets but no cash, so it faced cash-flow insolvency.
- Late payments caused cash-flow insolvency.
corporate insolvency
1company unable to pay
a situation where a company cannot pay its debts
- Corporate insolvency rates rose as borrowing costs increased.
- The firm advises clients on corporate insolvency and restructuring.
- New rules changed how corporate insolvency cases are handled.
- Corporate insolvency means a company cannot pay its debts.
- The country had more corporate insolvency cases this year.
file for insolvency
1apply for insolvency process
to officially ask for a legal process because you cannot pay your debts
- The manufacturer filed for insolvency after its lender withdrew support.
- Management said it had no choice but to file for insolvency in the local court.
- The startup filed for insolvency when a major investor pulled out.
- The company filed for insolvency.
- They filed for insolvency in court.
go into insolvency
1become officially insolvent
to reach a point where you cannot pay debts and must deal with them officially
- Several suppliers lost money when the retailer went into insolvency.
- If the rescue deal fails, the group could go into insolvency within weeks.
- The charity went into insolvency after donations fell sharply.
- The shop went into insolvency last month.
- The company may go into insolvency soon.
insolvency practitioner
1licensed insolvency professional
a professional who manages cases where people or companies cannot pay their debts
- An insolvency practitioner was appointed to sell the company's assets.
- The directors met a licensed insolvency practitioner to discuss their options.
- Creditors asked the insolvency practitioner for an update on the sale process.
- An insolvency practitioner helped close the company.
- They spoke to an insolvency practitioner.
insolvency proceedings
1formal debt-handling process
an official legal process for dealing with someone who cannot pay their debts
- The company entered insolvency proceedings after talks with lenders failed.
- Creditors were notified when insolvency proceedings began.
- The court opened insolvency proceedings against the construction firm.
- The company entered insolvency proceedings.
- The court started insolvency proceedings.
personal insolvency
1individual unable to pay
a situation where a person cannot pay their debts
- Personal insolvency cases increased after unemployment rose.
- The charity gives free advice on personal insolvency and debt management.
- A personal insolvency arrangement may allow debtors to repay part of what they owe over time.
- Personal insolvency can happen after job loss.
- He got advice about personal insolvency.