>>1035796
Insolvency has two meanings under US law: balance sheet insolvency (liabilities > assets) and equitable insolvency (inability to pay your debts as they become due in the ordinary course of business). So insolvency is a term that describes certain financial circumstances.

Bankruptcy is a court process under Federal statutes for discharging certain debts and using other financial remediation tools. It's intended to give debtors a "fresh start" while providing equitable treatment for creditors based on the priority of their legal claims.

So insolvency is a condition, and bankruptcy is a cure. It's one cure; there are many others. It's not a perfect cure, nor is it the appropriate cure in all circumstances.