Insolvency is not the same as bankruptcy.
Insolvency
Insolvency is a state of economic distress. An individual or company can be insolvent without being bankrupt — especially if the insolvency is temporary and correctable — but not the opposite.
Insolvent individuals / companies can reverse course by cutting costs, selling assets, borrowing money, renegotiating debt or allowing themselves to be acquired by a larger corporation that agrees to take over the insolvent company’s debts in return for control of its products or services.
Insolvency can lead to bankruptcy if the insolvent party is unable to successfully address its financial condition.
Bankruptcy
Bankruptcy is a court proceeding that decides how an insolvent debtor will deal with unpaid obligations. That usually involves selling assets to pay the creditors and erasing debts that can’t be paid. It can release you from most debts, provide relief and allow you to make a fresh start. You can enter into voluntary bankruptcy. To do this you need to complete and submit a Bankruptcy Application. Bankruptcy normally lasts for 24-48 months.