What context can I use each word in?
Learn when and how to use these words with these examples!
bankruptcy
Example
After losing his job, John had to file for bankruptcy to clear his debts. [bankruptcy: noun]
Example
The company faced bankruptcy due to mismanagement and excessive debt. [bankruptcy: noun]
insolvency
Example
The business was forced to close down due to insolvency. [insolvency: noun]
Example
The individual's insolvency was a result of poor financial planning. [insolvency: noun]
Good things to know
Which word is more common?
Bankruptcy is more commonly used than insolvency in everyday language. Bankruptcy is a well-known term that is often used in news, discussions about personal finance, and legal matters. On the other hand, insolvency is more commonly used in financial and legal contexts, such as discussions about corporate finance and bankruptcy laws.
Whatโs the difference in the tone of formality between bankruptcy and insolvency?
Both bankruptcy and insolvency can be used in formal and informal contexts. However, bankruptcy is more versatile and can be used in various formality levels, while insolvency is more commonly used in professional and legal settings.
