Restructuring is a stage where the client is not able to keep up the commitments to its creditors. There  is a special arrangement made between the creditor and the client to restructure the repayment  pattern. This is done to simplify and make the commitment easy for the client to repay ensuring the  entity doesn’t turn insolvent. 

Insolvency is the final stage of an Entity or the Individual where they are declared incapable of meeting  their commitment to their creditors. Such will be the situation, the creditors will have to compromise  on the losses incurred due to the insolvency of the credit extended to their clients. In this case, the  clients can be entities or Individuals.