insolvent
- Refers to the state when an entity or person is incapable of meeting monetary obligations as they are due in their normal business operations
- When the total debt owed by an individual or entity surpasses the fair market value of their assets
- The condition when the total amount of debt exceeds the available assets or means to repay them
- After several bad investments, the company became insolvent and had no choice but to file for bankruptcy.
- Due to the financial crisis, many homeowners found themselves insolvent when the value of their homes plummeted.
- The insolvent business was unable to pay its employees and suppliers, eventually leading to its closure.
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