die  Zahlungsunfähigkeit

C1

Estimated CEFR level.

/ˈtsaːlʊŋsʊnˌfɛːɪɡkaɪt/

📖 What does 'die Zahlungsunfähigkeit' mean?

Die Zahlungsunfähigkeit describes the state where a person or a company is no longer able to meet their due financial obligations (debts). It is a key term in German insolvency law (Insolvenzrecht).

Essentially, it means that the available liquid assets are insufficient to cover short-term liabilities.

🚨 Attention: Zahlungsunfähigkeit (inability to pay / illiquidity) is not the same as Überschuldung (over-indebtedness), although both can be grounds for initiating insolvency proceedings. Überschuldung refers to the balance sheet (assets do not cover debts), while Zahlungsunfähigkeit refers to cash flow (no money for due bills).

Article rules for der, die, and das

🧐 Grammar Deep Dive: die Zahlungsunfähigkeit

The word 'Zahlungsunfähigkeit' is a feminine noun. The article is 'die'. It is mostly used in the singular as it describes a state.

Although rare, a plural form can theoretically be constructed when referring to multiple instances of insolvency (e.g., in statistical analyses).

Example Sentences

1. Die Firma musste wegen Zahlungsunfähigkeit Insolvenz anmelden.
   (The company had to file for insolvency due to inability to pay.)
2. Der Geschäftsführer versuchte, die drohende Zahlungsunfähigkeit abzuwenden.
   (The managing director tried to avert the impending insolvency.)
3. Bei Eintritt der Zahlungsunfähigkeit ist schnelles Handeln gefragt.
   (Upon occurrence of the inability to pay, swift action is required.)

💬 How is 'Zahlungsunfähigkeit' used?

The term 'Zahlungsunfähigkeit' is primarily used in economic and legal contexts.

• Insolvenzrecht (Insolvency Law): It is a central prerequisite for opening insolvency proceedings (§ 17 InsO in Germany - Insolvenzordnung).
• Company Reporting: Companies must monitor their financial situation to identify potential Zahlungsunfähigkeit early on.
• Business News: Reports about insolvent companies frequently use this term.
• Private Individuals: Individuals can also become zahlungsunfähig (leading to Privatinsolvenz - personal insolvency).

In colloquial German, terms like 'Pleite' (broke) or 'Bankrott' (bankrupt) are often used, but they are less precise than the legal term 'Zahlungsunfähigkeit'.

🧠 Mnemonics and Memory Aids

Article Mnemonic: Nouns ending in '-heit' or '-keit' in German are almost always feminine (die Fähigkeit - the ability -> die Zahlungsunfähigkeit - the inability to pay). Remember: '-keit' feels like a 'key' (feminine 'die') to unlock the noun's gender.

Meaning Mnemonic: Imagine someone needing to make a 'Zahlung' (payment) but they are 'UN-fähig' (UN-able) to do so. They have Zahlungs-UN-fähigkeit.

🔄 Synonyms and Antonyms

⚠️ Similar Words:

• Überschuldung: (Over-indebtedness) Another ground for insolvency, where liabilities exceed assets (balance sheet perspective). Not identical to Zahlungsunfähigkeit (cash flow problem).

😂 A Little Joke

Warum hat der Geldautomat beim Finanzamt gekündigt?
Er konnte die ständige Zahlungsunfähigkeit seiner Kunden nicht mehr ertragen! 😉

(Why did the ATM at the tax office quit?
It couldn't bear the constant inability to pay [Zahlungsunfähigkeit] of its customers anymore!)

📜 Poem about Zahlungsunfähigkeit

Das Konto leer, die Kasse klamm,
die Rechnung mahnt, welch bitt'res Drama.
Kein Euro fließt, die Schuld, sie drückt,
man ist vom Markt fast weggerückt.
Die Zahlungsunfähigkeit, ein schweres Los,
macht Firmen klein und Hoffnungen bloß.
Doch manchmal ist's ein Neubeginn,
hat auch das Ende einen Sinn.

(Account empty, cash box bare,
the bill demands, what bitter despair.
No Euro flows, the debt weighs down,
almost pushed out of the market town.
The inability to pay, a heavy fate,
makes companies small and hopes abate.
But sometimes it's a start anew,
even the end holds meaning true.)

🧩 Little Riddle

Ich bin ein Zustand, kein Gefühl,
erreicht ein Unternehmen oft als Ziel – ungewollt kühl.
Ich trete ein, wenn Rechnungen fällig sind,
doch auf dem Konto weht nur noch der Wind.
Im Gesetzbuch steh' ich klar benannt,
bin oft der Grund für's Insolvenzgericht im Land.

Was bin ich?

(I am a state, not a feeling,
often reached by companies as a target – unwillingly chilling.
I occur when bills are due,
but the bank account has nothing new.
In the law books, my name is clear,
often the reason for the insolvency court appearing near.

What am I?
Answer: die Zahlungsunfähigkeit / inability to pay / insolvency)

💡 Other Information

Word Composition (Wortzusammensetzung):

The word 'Zahlungsunfähigkeit' is a compound noun, composed of:

• Zahlung: (Payment) Derived from the verb 'zahlen' (to pay).
• -s-: A linking 's' sound (Fugen-s).
• Unfähigkeit: (Inability) Describes the lack of an ability, here: the ability to pay. 'Un-' is a negation prefix, 'Fähigkeit' (ability) comes from 'fähig' (able).

It literally describes the 'non-ability for payment'.