Insolvency

[Hina Muqadas]

The condition of being insolvent; the state or
condition of a person who is insolvent; the condition of one who is
unable to pay his debts as they fall due, or in the usual course of
trade and business; as, a merchants insolvency.

[Raeanne Dimick]

(ECONOMICS) crisis created when a government or firm cannot pay its obligations in any reasonable time frame. Often confused with illiquidity, which is a when an entity suffers a temporary shortage of cash.
When a firm has assets that are greater than [liabilities], it is [solvent]. In a lot of cases, the management of a firm runs out of ways to make money with the assets it has, so it invests in poor quality assets with high risk of default (for example, by lending money to borrowers using inflated housing prices as [collateral]).

[Mark Zuckerberg]

The state of being insolvent.

[Dave Paprocki]

Insolvency is a situation in which an individual or organization can not pay off its bills and debts.

[Lizzy Liz]

(especially of a company) the condition of not having enough money to pay debts, buy goods, etc., or an occasion when this happens: