Bankruptcy, Insolvency, and Reorganization

Bankruptcy is a legal process that allows individuals or businesses unable to pay their debts to seek relief and reorganize their financial obligations. Insolvency refers to the financial state where someone cannot meet their debts when due. Reorganization, in this context, involves restructuring a debtor’s finances, often under court supervision, to enable them to repay creditors over time while continuing operations. Forensic accounting plays a crucial role by investigating financial records, ensuring compliance, and uncovering any fraudulent activities during this process, providing clarity and accountability for all parties involved.