What context can I use each word in?
Learn when and how to use these words with these examples!
bankrupt
Example
After the economic crisis, many businesses went bankrupt and had to close down. [bankrupt: adjective]
Example
He filed for bankruptcy after accumulating too much debt. [bankruptcy: noun]
insolvent
Example
The company became insolvent and had to lay off many employees. [insolvent: adjective]
Example
She realized she was insolvent when she couldn't pay her bills. [insolvency: noun]
Good things to know
Which word is more common?
Bankrupt is more commonly used than insolvent in everyday language. Bankrupt is a widely recognized term associated with financial failure and legal processes, while insolvent is less commonly used and may be more technical or formal.
Whatโs the difference in the tone of formality between bankrupt and insolvent?
Both bankrupt and insolvent can be used in formal contexts, especially when discussing legal or financial matters. However, insolvent may be perceived as slightly more formal or technical due to its narrower usage.
