What is the meaning of insolvency?

insolvency is the inability to pay one's debts as they come due. Even though the total assets of an organization may exceed its total liabilities, the entity is insolvent if the assets cannot be converted into cash to meet the current obligations.

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APABarry Goldsmith. (2010). insolvency. Retrieved September 28, 2026, from http://smartdefine.org/insolvency/definitions/1156119
ChicagoBarry Goldsmith. 2010. "insolvency" http://smartdefine.org/insolvency/definitions/1156119 (accessed September 28, 2026).
HarvardBarry Goldsmith 2010, insolvency, Smart Define, viewed 28 September, 2026, <http://smartdefine.org/insolvency/definitions/1156119>.
MLABarry Goldsmith. "insolvency" 21 October 2010. Web. 28 September 2026. <http://smartdefine.org/insolvency/definitions/1156119>
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