'insolvency' originates from Latin, specifically the word 'insolventia,' where 'in-' meant 'not' and 'solventia' meant 'paying.'

'insolventia' transformed into the French word 'insolvabilité,' and eventually became the modern English word 'insolvency' through Middle English.

Initially, it meant 'not being able to pay,' and this meaning has largely remained the same in modern usage.