What does insolvent mean Meaning and Definition
What does insolvent mean
Pronunciation
(/ɪnˈsɒlvənt/)
Part of Speech
Adjective
Definition
Unable to pay debts or financial obligations; lacking the means to meet financial commitments.
Etymology
The word “insolvent” comes from the Latin “insolvens,” meaning “breaking” or “taking apart,” and is derived from the verb “solvere,” meaning “to loosen” or “to release.”
Usage Notes
Use “insolvent” to describe a company, individual, or organization that is unable to pay its debts or financial obligations. It can also be used to describe a situation where someone is unable to meet their financial commitments.
Cultural References
The term “insolvent” appears in various forms of media, including literature, film, and television. For example, in the novel “The Great Gatsby” by F. Scott Fitzgerald, the character of Jay Gatsby is described as being insolvent after he loses his fortune.
Idiomatic Expressions or Phrases
- To be in a state of insolvency
- To be on the brink of insolvency
Related Words or Phrases
- Bankrupt
- Financially distressed
- Mortgaged
Collocations
- Insolvent business
- Insolvent debt
- Insolvent company
Frequency of Use
The term “insolvent” is commonly used in financial and business contexts, but its frequency of use can vary depending on the industry and location.
Common Misspellings
- Insoulvent
- Insolvent
- Insollvent
Additional Information
When a company or individual becomes insolvent, it can have significant consequences, including the loss of assets, the inability to meet financial obligations, and even bankruptcy. In some cases, insolvent debtors may be able to negotiate with their creditors to settle their debts through a process known as debt restructuring.
In other cases, insolvent debtors may be required to file for bankruptcy, which can provide relief from their debts but can also have negative consequences for their creditworthiness and future financial opportunities.
It is essential for individuals and businesses to understand the legal and financial implications of insolvency and to seek professional advice if they are struggling to pay their debts.