🇬🇧 Insolvency meaning: English Vocabulary Flash Card

Insolvency is when a person or a company owes more money than they can pay back. Imagine you promised to pay ten dollars, but you only have one dollar left, no matter how hard you check your pockets or your piggy bank. That money problem is called insolvency. When this happens, adults often need special helpers, like money experts or courts, to decide what to do next, such as making a plan to pay back some of the money or closing the business so it doesn’t keep getting into deeper trouble.

The lemonade stand declared insolvency after buying five bags of sugar and selling only one sad cup to Grandma.

The Time‑Travel Museum hit insolvency after they spent next year’s budget last week in the future.

The superhero team almost faced insolvency after they put all their funds into capes that were dry‑clean only.

Our school’s fake bank game ended in insolvency when we printed so much play money it wasn’t worth anything.

The Cookie Kingdom fell into insolvency when the royal baker ate all the cookies he was supposed to sell.

The baker stared at the empty cashbox and a court notice: insolvency. Insolvency felt like a stone as she stacked unpaid bills. Neighbours whispered insolvency, then brought coins. They wiped the counter, smiled, and paid; insolvency lost its hold. The baker folded the notice marked insolvency and hugged the warm bread.

This word is at the C2 level, which means it represents the highest mastery of English. It’s often used in specialized or highly formal contexts and helps you communicate with precision and subtlety, much like a native speaker.

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