Well, insolvency is a financial state where you are unable to pay your debts. The declaration of such a state is called bankruptcy. The definitions of these are same in India as everywhere else. How these are handled in India makes the difference!
2. Insolvency is a state of being where an
entity is not able to repay the debts to
its creditors within the prescribed
time
The insolvent entity/insolvent debtor
can either be a person or a company
If the debtor is a company, then they
are referred to as corporate debtors
The creditors can either be
operational or financial creditors
3. Bankruptcy refers to a declaration
of insolvency
It is only after this declaration that
the Insolvency and Bankruptcy
Board of India steps in
Bankruptcy declaration can either
be filed by the debtor or the
creditors
When bankruptcy is declared,
insolvency resolution process is
initiated.
4. Insolvency in business refers to when a company has gone insolvent.
It is a case when the company is not able to pay operational or financial credit.
When a business goes insolvent, the employees of that business suffer.
Not being able to pay the employees is an example of inability repay
operational credit.
5. After a company becomes insolvent, either they
or the operational/financial creditors can file to
initiate the insolvency resolution process.
The form used to file this petition comes under
section 9.
If the form is accepted, the insolvency resolution
process initiates.
At the end of the resolution, either the company is
sold or the assets of the power point debtor are
liquidated.
https://registrationwala.wordpress.com/2018/12/17/what-is-insolvency-and-
bankruptcy/
6. If the insolvent entity is a single person, then it is the case of personal
insolvency.
The matter of personal insolvency is handled by Debt Recovery Tribunal.
Personal insolvency does not take much time to be resolved.
Personal insolvency can lead to the need of personal assets to be liquidated.
Personal Insolvency