BusinessJuly 15, 2026

insolvency

/ɪnˈsɒlvənsi/

Definition

A state of financial distress where an individual or organization is unable to pay their debts as they become due.

Etymology

The word derives from the Latin 'insolvens', meaning 'not paying.' It combines the prefix 'in-' (not) with 'solvere' (to loosen or pay), reflecting the inability to 'loosen' or settle financial obligations.

In the news

The provided article does not actually contain the word 'insolvency'; however, it discusses fiscal pressures, corporate earnings, and market volatility, which are the primary economic conditions that lead businesses toward insolvency.

Benchmarks pare most gains; European market decline

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Business Standard

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