Insolvency is a term used to describe the inability of an individual or organization to pay their debts. It is usually caused by a lack of funds, which can be due to NEED, POVERTY, FAILURE, or IMPECUNIOUSNESS. NEED is a state of being in which something is required or wanted, and is typically associated with a lack of resources. POVERTY is a state of having little or no money, goods, or means of support. FAILURE is the lack of success in achieving a desired outcome. IMPECUNIOUSNESS is the state of being without money or resources.