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' both describe that someone or a company can no longer pay their bills. 'Zahlungsunfähigkeit' is more precise and more factual. It is used especially in official, economic, or legal contexts. 'Pleite' is the colloquial form and sounds more natural in everyday speech. When friends talk about a business, they are more likely to say 'Pleite'. In a letter, report, or legal procedure, 'Zahlungsunfähigkeit' fits better.
Die Firma meldete ihre Zahlungsunfähigkeit beim zuständigen Gericht.
The company reported its insolvency to the competent court.
Nach mehreren Monaten ohne Kunden war die Pleite des Cafés nicht mehr zu verhindern.
After several months without customers, the café's bankruptcy could no longer be prevented.