is insolvency the same thing as bankruptcy 
insolvency is not the same as bankruptcy although a company that has become insolvent may file for bankruptcy insolvency is the state of not being able to pay your obligations while bankruptcy is a legal process to discharge your debts 4the bottom lineinsolvency is a state where a debtor cannot pay their debts and it can occur for a number of reasons understanding the factors that can lead to insolvency such as overspending can help you prevent insolvency and its consequences 