INSOLVENCY


Meaning of INSOLVENCY in English

n.

Condition in which liabilities exceed assets so that creditors cannot be paid.

It is a financial condition that often precedes bankruptcy . In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet approach means that total liabilities exceed total assets.

Britannica Concise Encyclopedia.      Краткая энциклопедия Британика.