Answer;
A person, company, etc having insufficient (not enough) assets to meet debts and liabilities; the state falling into bankruptcy 

Most of the companies begin their businesses with a financial back up of borrowed finances (debt), and due to the fact that every debt or borrowed money comes with interest, after a process of time, the interest on the debt accumulates into a debt that can not be paid.

Insolvency means; to reach the level where somebody is not able to pay off the debt or loan that he/she borrowed for the sake of doing business. 

This article was taken from www.Ngabo.org/written by Ap Ngabo.