die  Insolvenz

C1

Estimated CEFR level.

/ɪnzoˈlʦ/

💰 What does 'die Insolvenz' mean?

Die Insolvenz describes the state of insolvency or bankruptcy of a person or a company. It occurs when someone can no longer meet their due payment obligations. Insolvenz is a legal term that often leads to the initiation of insolvency proceedings (Insolvenzverfahren).

The word is feminine, so the correct article is die.

Article rules for der, die, and das

🧐 Grammar Under the Microscope: Die Insolvenz

The noun 'Insolvenz' is feminine. It is mainly used in the singular.

The plural is die Insolvenzen and refers to multiple cases of insolvency (e.g., die Insolvenzen nahmen im letzten Quartal zu - insolvencies increased in the last quarter).

Example Sentences

1. Die Firma musste leider Insolvenz anmelden.
   (Unfortunately, the company had to file for insolvency.)
2. Wegen der drohenden Insolvenz suchte der Geschäftsführer nach neuen Investoren.
   (Because of the impending insolvency, the manager looked for new investors.)
3. Das Gericht eröffnete das Verfahren wegen Insolvenz.
   (The court opened the proceedings due to insolvency.)
4. Viele Gläubiger meldeten ihre Forderungen im Rahmen der Insolvenz an.
   (Many creditors registered their claims as part of the insolvency.)

💬 When and how to use Insolvenz?

'Insolvenz' is a key term in economics and law. It's used to describe the financial distress that occurs when debts can no longer be paid.

• In business: When a company is unable to pay its debts (Unternehmensinsolvenz - corporate insolvency).
• Privately: When an individual cannot pay their debts (Privatinsolvenz or Verbraucherinsolvenz - personal insolvency).
• Legal context: In connection with the Insolvenzverfahren (insolvency proceedings), the Insolvenzverwalter (insolvency administrator), or Insolvenzrecht (insolvency law).

⚠️ Colloquially, Germans might also say 'Pleite' (broke) or 'Bankrott' (bankrupt), but 'Insolvenz' is the more formal and legally precise term.

🧠 Mnemonics for Insolvenz

Article Mnemonic: Think of 'die' company ('die Firma') or 'die' state of being broke ('die Pleite'). Both are feminine, just like 'die' Insolvenz.

Meaning Mnemonic: 'In-solvenz' sounds like the opposite of 'solvent'. The prefix 'in-' often means 'not' in Latin-derived words. So: Not solvent = unable to pay.

↔️ Opposites and Similar Words

😂 A Little Joke

Fragt der Richter den Angeklagten: "Warum haben Sie die Bank überfallen?"
Antwortet der Angeklagte: "Die Bank hat doch zuerst angefangen – mit der Kontoführungsgebühr!"

(Judge asks the defendant: "Why did you rob the bank?"
Defendant replies: "The bank started it – with the account maintenance fee!")

📜 A Little Poem

Das Konto leer, die Kasse klamm,
die Schulden steigen, welch ein Drama.
Rechnungen mahnen, groß und klein,
das Geld will einfach nicht mehr sein.
Man hofft und bangt, sucht einen Weg,
doch oft führt's nur zum Insolvenzsteg.

(Account empty, coffers tight,
debts are rising, what a plight.
Bills demanding, big and small,
money just won't heed the call.
One hopes and fears, seeks a new way,
but often leads to insolvency's quay.)

❓ Riddle Time

Ich bin ein Zustand, den keiner will,
wenn die Kasse leer ist und alles still.
Firmen und Leute trifft's manchmal schwer,
die Zahlungsfähigkeit ist nicht mehr.

Was bin ich?

(I am a state that no one desires,
when the cash box is empty and all quiets.
Companies and people sometimes face my blow,
the ability to pay is gone, you know.

What am I?)(Answer: die Insolvenz / insolvency)

✨ Trivia

The word 'Insolvenz' comes from the Latin adjective insolvens, meaning 'not loosening' or 'not paying'. It is composed of the negation particle in- and solvens (present participle of solvere = to loosen, to pay).

Important related terms include:

• Insolvenzverfahren: The legal proceedings for handling insolvency.
• Insolvenzverwalter: An administrator appointed by the court to manage and liquidate the debtor's assets.
• Insolvenzmasse: The total assets of the debtor available to satisfy the creditors.