Insolvent refers to a financial condition where an individual, company, or organization is unable to meet its financial obligations or discharge its debts as they become due. Insolvency occurs when liabilities exceed assets, impairing the entity's ability to repay creditors or honor contractual obligations. Insolvency can result from various factors, including excessive debt, poor financial management, economic downturns, legal judgments, or unforeseen events that disrupt cash flow or impair asset values. Insolvent entities may seek relief through debt restructuring, bankruptcy proceedings, liquidation of assets, or financial reorganization to address financial distress and restore solvency. Creditors and stakeholders of insolvent entities may pursue legal remedies, such as debt collection, foreclosure, or enforcement of security interests, to recover outstanding debts or protect their interests. Understanding insolvency is essential for individuals and businesses to recognize warning signs, seek timely assistance, and implement strategies to manage financial difficulties and avoid bankruptcy or adverse legal consequences.