Hi there,

Bankruptcy, in Australia, is the legal position of individuals who have declared that they cannot pay their debts as and when they fall due. Technically, Bankrupts are insolvent because of this. They become subject to certain obligations for the period of the bankruptcy, being 3 years.

Liquidation is the equivalent for companies, with the variation that at the end of the liquidation (not set time frame), the company is deregistered.

Insolvency, is a term used for the financial position of a personal or company. They are insolvent when they cannot pay debts as an when they fall due for payment. Generally speaking, this is both a subjective (case by case basis) and objective (legal/accounting definitions) test.