Bankrupt
Anything that does not have enough money to pay all of its debt is insolvent. If it applies for protection by law it may an be bankrupt.
In many countries the company or business can "file for bankruptcy protection" so that creditors cannot destroy all of the physical capital and goodwill by breaking it apart and moving it away. All this provides is more time to work out the new deal between the owners and the people the business owes money.
An individual person who owes debt and cannot pay it can also "declare bankruptcy". That person will lose all but some basic things ay own, but all the debt will go away. Normally ay cannot easily borrow money again for years.
Very often, the creditor threatens the debtor with debt slavery, if the debtor does not know that ay have the right to go bankrupt. This is the human rights problem in very many countries.