If your business can no longer pay your business debts, or if the value of your assets are worth less than your debts, then your business is 'insolvent'.
In many cases, insolvency and its effects are unavoidable. Some businesses, however, may choose to declare themselves bankrupt if debts are completely unmanageable. It is a good idea to research both options before taking any action. It is highly recommended that you seek professional advice before committing to a decision.