Simply put these terms amount to the same thing the inability of a business to pay their debts but its important to understand the differences between liquidation and insolvency.
Insolvency can be considered a financial state of being, when a company is unable to pay its debts or when it has more liabilities than assets on its balance sheet, this being legally referred to as technical insolvency.
Liquidation is the legal ending of a limited company. It will stop a company from doing business, or employ staff.
It is also possible to be technically solvent and unable to repay debt. This occurs when a company is cash insolvent and with assets that exceed its liabilities, but unable to source additional funds. A liquidator is appointed…
Read the full article at: https://www.bmmagazine.co.uk/in-business/advice/what-is-the-difference-between-liquidation-and-insolvency/