insolvent/bankrupt

[Allifathima]

1. The company has become insolvent.
2. The company has become bankrupt.
3. The company has declared it is insolvent.
4. The company has declared it is bankrupt.
   Do ‘insolvent’ and ‘bankrupt’ mean the same?
   Can a company itself declare it is insolvent/bankrupt or only
   a court can declare a company insolvent/bankrupt?
   Please comment.

[Luschen]

@Allifathima

1. The company has become insolvent.
2. The company has become bankrupt.
3. The company has declared it is insolvent.
4. The company has declared it is bankrupt.
   {usually this would be phrased “The company has declared bankruptcy” #3 sounds better than #4, I don’t think we usually say “The company has declared insolvency” - usually sentence #3 is used, but modified: “The company has declared itself insolvent”}
   Do ‘insolvent’ and ‘bankrupt’ mean the same?
   Not exactly, insolvent means it can’t pay its bills at the moment, or it owes more than the company is worth: liabilities > assets. Bankrupt implies it will never be able to pay back all its creditors.
   Can a company itself declare it is insolvent/bankrupt or only
   a court can declare a company insolvent/bankrupt?
   {Yes, a company can do the declaring, and in the U.S., this is generally the case, although the courts must approve it and approve any type of repayment plan.}

Please comment.