Illiquidity vs. Insolvency

Illiquiditynoun

(economics) The condition of being illiquid; a lack of liquidity; difficulty in selling out an asset

Insolvencynoun

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.

Insolvencynoun

Insufficiency to discharge all debts of the owner.

Insolvencynoun

The condition of having more debts than assets.

Insolvencynoun

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 merchant's insolvency.

Insolvencynoun

the lack of financial resources

Insolvency

In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be insolvent. There are two forms: cash-flow insolvency and balance-sheet insolvency.