While the terms are easily distinguishable to a lawyer, to others, they are practically synonymous, with insolvency nuanced towards being a temporary condition and bankruptcy nudged towards a more permanent or intractable failure.
The implication is that an insolvent person could become solvent by immediate application of better financial management, but a bankrupt person has no choice but to default on a portion of his debts or other financial obligations. Bankruptcy is the noun/adjective descibing what the court does with bankrupt people and businesses.
The ACME brand hair-splitter is the only professional-grade capillascindor you will ever need.
The implication is that an insolvent person could become solvent by immediate application of better financial management, but a bankrupt person has no choice but to default on a portion of his debts or other financial obligations. Bankruptcy is the noun/adjective descibing what the court does with bankrupt people and businesses.
The ACME brand hair-splitter is the only professional-grade capillascindor you will ever need.