insolvency

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

Origin:
1650–60; insolv(ent) + -ency

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World English Dictionary
insolvent (ɪnˈsɒlvənt)
 
adj
1.  (of a person, company, etc) having insufficient assets to meet debts and liabilities; bankrupt
2.  of or relating to bankrupts or bankruptcy
 
n
3.  a person who is insolvent; bankrupt
 
in'solvency
 
n

Collins English Dictionary - Complete & Unabridged 10th Edition
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Example sentences
First, in the continent that created the debtor's prison, insolvency is still
  tainted with moral failure.
And a secret-spilling website flirting with insolvency and dissolution suddenly
  burst onto the world stage.
More to the point, you could easily end up in a situation where tax bills were
  pushing companies into insolvency.
But the state government is still too big, if insolvency can be called too big.
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