insolvency
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insolvency
The state in which a person or company is no longer able to meet due financial obligations. This is also referred to as insolvency.
Nach monatelangen Verlusten musste das Unternehmen Zahlungsunfähigkeit anmelden.
After months of losses, the company had to declare insolvency.
The word consists of three parts: 'Zahlung' (payment), the linking element '-s-', and 'Unfähigkeit' (inability). So it literally describes the inability to pay.
Die Zahlungsunfähigkeit des Hauptkunden hat auch uns in Schwierigkeiten gebracht.
The insolvency of our main customer also got us into difficulties.
This word is often used with certain verbs. A company can 'Zahlungsunfähigkeit anmelden' (declare insolvency), 'in die Zahlungsunfähigkeit geraten' (become insolvent), or 'es droht die Zahlungsunfähigkeit' (insolvency is imminent).
Der Firma droht die Zahlungsunfähigkeit, wenn kein neuer Investor gefunden wird.
The company faces insolvency if no new investor is found.
'Zahlungsunfähigkeit' (insolvency) is a formal term from business and legal language. In everyday speech, you would more likely say that someone 'pleite ist' (is broke) or 'kein Geld mehr hat' (has no money left).
Im Geschäftsbericht wurde die drohende Zahlungsunfähigkeit erwähnt.
The annual report mentioned the imminent insolvency.
To state the reason for something, 'Zahlungsunfähigkeit' (insolvency) is often used with the preposition 'wegen' (because of) and the genitive.
Wegen Zahlungsunfähigkeit musste das Geschäft nach nur einem Jahr schließen.
Because of insolvency, the shop had to close after only one year.
bankruptcy / flop
Die Pleite and die Zahlungsunfähigkeit can both describe a situation in which a person or company can no longer meet its financial obligations. Pleite is the colloquial and often more general description, whereas Zahlungsunfähigkeit is the precise formal term for this state. Pleite is more suitable in conversation, while Zahlungsunfähigkeit is more appropriate in factual statements.
Nach Monaten ohne Einnahmen zeigte sich die Zahlungsunfähigkeit des kleinen Betriebs.
After months without any income, the small business's insolvency became apparent.
Nach Monaten ohne Einnahmen war der kleine Betrieb pleite.
After months without any income, the small business was broke.
