Does insolvency mean bankruptcy?

No, insolvency does not mean bankruptcy. Insolvency does not necessarily lead to bankruptcy. Bankruptcy is a legal status and insolvency is a situation. You can read about Insolvency And Bankruptcy Code (IBC) – IBC Amendment Bill 2021 [UPSC Notes GS III] in the given link.

Further readings:

1. Non Performing Assets (NPA) – Facts for UPSC GS-III
2. Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19