Insolvency

Part of speech: noun (n.)

1. The condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business; as, a merchant's insolvency.

2. Insufficiency to discharge all debts of the owner; as, the insolvency of an estate. Act of insolvency. See Insolvent law under Insolvent, a.