Insolvency- "out of cash"
Example- suppose a person lost a job but he has to pay EMI for loans.he can't pay bcz he is out of cash.so then he is called insolvent.he is unable to pay debts.
But if he gets job in next few months&then he can pay his debts with his salary.the his insolvency is gone.
Bankruptcy- if insolvency continues for many months or years i.e., a person is unable to pay debts anymore bcz the person didn't get any job for months and years& no salary to pay.
"Insolvency becomes bankruptcy"
Thanks for reading my post,
Yours @summisimeon