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Describes the state of a person or company that is no longer able to pay debts that are due. It means unable to pay.
Nach monatelangen Verlusten musste die Firma schließlich zugeben, dass sie insolvent ist.
After months of losses, the company finally had to admit that it was insolvent.
The word consists of the prefix 'in-' (not) and 'solvent' (able to pay). If you know the meaning of 'solvent', you can easily remember 'insolvent' as its opposite.
Trotz der Krise blieb das Unternehmen die ganze Zeit solvent.
Despite the crisis, the company remained solvent the whole time.
The adjective is almost always used with the verbs 'sein' (to be) or 'werden' (to become). 'Insolvent sein' (to be insolvent) describes the state, while 'insolvent werden' (to become insolvent) describes the process.
Leider ist der Bauträger jetzt insolvent.
Unfortunately, the property developer is now insolvent.
In business and legal contexts, the fixed expression 'Insolvenz anmelden' (to file for insolvency) is very important. This is the formal step that an insolvent company must take.
Der Geschäftsführer musste für seine Firma Insolvenz anmelden.
The managing director had to file for insolvency for his company.
bankruptcy / flop
Pleite and insolvent can both express that a person or company can no longer pay its debts when they are due. Pleite is colloquial and often sounds more personal, while insolvent is a technical and more formal term. In a private conversation, pleite is more suitable; in business or official statements, insolvent is more appropriate.
Der kleine Betrieb ist nach mehreren schlechten Monaten insolvent.
The small business became insolvent after several bad months.
Der kleine Betrieb ist nach mehreren schlechten Monaten pleite.
The small business went broke after several bad months.
