Nowadays a lot of people used a credit card and therefore they have been gone through debt in the bank account. So when one person was*not able to pay the loan amount to the bank,*the state called*insolvency. If anyone thought that it is the same as bankruptcy, but both are not the same because if anyone got bankruptcy then he also called insolvent, but*without being insolvent one cannot become bankrupt. Bankruptcy is made to solve the problem called insolvency.