Translation guide
Insolvency refers to the state of being unable to pay debts when they are due. In Japanese, this concept is expressed through specific legal and financial terms, as well as more general descriptive phrases.
Describing a person or company that cannot pay its bills or debts.
A general term meaning 'unable to pay'. It is used in both personal and business contexts.
彼は借金の返済が支払い不能に陥った。
He became insolvent and could not repay his debts.
Referring to the legal status of being insolvent, often in the context of bankruptcy law.
支払不能 (shiharai funō) refers to the inability to pay debts as they come due (cash flow insolvency), while 債務超過 (saimu chōka) means that total liabilities exceed total assets (balance sheet insolvency). In practice, 債務超過 is more commonly used in corporate accounting, while 支払不能 is used in legal contexts.
The English word 'insolvency' does not have a single direct equivalent in Japanese that covers all nuances. Using 破産 (hasan) when you mean temporary inability to pay may be too strong, as it implies legal bankruptcy.
Literally 'excess of debts', this is a common accounting term meaning that liabilities exceed assets. It is often used in business contexts.
その会社は債務超過で倒産した。
The company went bankrupt due to insolvency.
Bankruptcy. While not exactly the same as insolvency, it is the legal process that often follows insolvency. Commonly used in everyday language.
破産手続きを開始した。
They initiated bankruptcy proceedings.
A descriptive phrase meaning 'a state of being unable to pay'. Useful when explaining the concept in simpler terms.
その会社は支払いができない状態だ。
The company is in a state of insolvency.
The legal term for insolvency, used in statutes and court proceedings. Note the kanji 不 instead of 不能 in some contexts.
会社は支払不能に陥っている。
The company is insolvent.
Specifically 'insolvency under bankruptcy law'. Used in legal documents.
破産法上の支払不能が認められた。
Insolvency under the bankruptcy law was recognized.