insolvency
Unable to pay
Insolvency is the state of being unable to pay debts as they come due.
A person or company becomes insolvent when liabilities exceed assets or when cash flow can't cover obligations: The company filed for bankruptcy after months of insolvency.
The term appears most often in legal and financial contexts, where it triggers specific procedures and protections.
Formal business dissolution
- liquidatorOne who dissolves entities
- auctionCompetitive public sale
- divestmentDisposal of assets
- receivershipCourt-ordered asset management
Release of substance outward
- creditorsThose owed payment
- petitionFormal written appeal
- debtorOne who owes
- trusteeOne managing another's assets
exemption · adjudication · bankrupt · protection · court · judgment · assets · means test
Complete destruction or collapse
- financial distressInability to meet obligations
- overextensionExceeding sustainable capacity
- undercapitalizationInsufficient business funding level
- debt burdenTotal owed obligations weighing down
cash flow crisis · illiquidity · negative equity · financial strain · debt spiral
Criminal or neglectful behavior
- arrearsOverdue financial obligations
- nonpaymentFailure to settle debts
- overduePast expected arrival
- breachBreaking of agreement
collection · cure period · grace period · debt recovery · garnishment · attachment · enforcement
Catastrophic loss of control
- contagionDisease spread by contact
- collapseSudden structural failure
- bailoutEmergency aid preventing bankruptcy
- recessionProlonged economic decline
systemic risk · credit crunch · bank run · too big to fail · sovereign debt · domino effect · financial panic · subprime
Shift in opposite direction
- reorganizationChanging how something's arranged
- workoutStructured physical exercise
- rescueSave from harm
- rehabilitationRecovery from injury/addiction
administration · moratorium · haircut · prepackaged · negotiation · forbearance
winding-up
Formal business dissolution
- liquidatorOne who dissolves entities
- auctionCompetitive public sale
- divestmentDisposal of assets
discharge
Release of substance outward
trustee · exemption · adjudication · bankrupt · protection · court · judgment · assets · means test · filing
ruin
Complete destruction or collapse
- financial distressInability to meet obligations
- overextensionExceeding sustainable capacity
- undercapitalizationInsufficient business funding level
cash flow crisis · debt burden · illiquidity · negative equity · financial strain · debt spiral
delinquency
Criminal or neglectful behavior
- arrearsOverdue financial obligations
- nonpaymentFailure to settle debts
- overduePast expected arrival
breach · collection · cure period · grace period · debt recovery · garnishment · attachment · enforcement
meltdown
Catastrophic loss of control
- contagionDisease spread by contact
- collapseSudden structural failure
- bailoutEmergency aid preventing bankruptcy
recession · systemic risk · credit crunch · bank run · too big to fail · sovereign debt · domino effect · financial panic · subprime · austerity
turnaround
Shift in opposite direction
- reorganizationChanging how something's arranged
- workoutStructured physical exercise
- rescueSave from harm
rehabilitation · administration · moratorium · haircut · prepackaged · negotiation · forbearance
- dissolutionbreakup, breakdown, liquidation, wind down, disintegration
- credit eventsloan default, failure to pay, restructuring, debt restructuring, repudiation
- financesmoney, affluence, cash, bankrupt, income
- debtdebt, creditor, owe, debtor, lender
- financial termswealth, asset, currency, balance sheet, audit
- business troublesbankruptcy, crisis, failure, layoffs, losses
insolvencysolvency
Capacity to pay debts
creditworthiness · liquidity · financial stability · going concern · financial health
insolvencywealth
Abundance of valuable resources
affluence · solvency · wealthiness · prosperity · riches
- financial insolvencyInability to pay obligations
- insolvency resolutionSettling debts of failing entities