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insolvency

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in⋅sol⋅ven⋅cy

[in-sol-vuhn-see]
–noun
the condition of being insolvent; bankruptcy.

Origin:
1650–60; insolv(ent) + -ency
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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in·sol·ven·cy   (ĭn-sŏl'vən-sē)   
n.   pl. in·sol·ven·cies
  1. The condition of being insolvent.

  2. An instance of being insolvent.

The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Financial Dictionary

Insolvency

When a company can no longer meet its debt obligations with another firm or institution.

Investopedia Commentary

An insolvency proceeding is when the company that is on "the hook" for the debt attempts to get some of their money back through liquidation.

See also: Bankruptcy, Liquidation, Zombies

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Legal Dictionary

Main Entry: in·sol·ven·cy
Pronunciation: in-'säl-v&n-sE
Function: noun
Inflected Form: plural -cies
1 : the fact or state of being insolvent —compare BANKRUPTCY
2 : insufficiency (as of an estate) to discharge all enforceable debts
NOTE: Insolvency matters are covered under the Bankruptcy Code.
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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