individual insolvency

Individual insolvency refers to a financial state where a person is unable to pay their debts as they become due. This situation can arise from various factors, such as job loss, unexpected expenses, or financial mismanagement. When someone is insolvent, they may seek legal solutions, like bankruptcy, which provides a structured way to address their debts, either through payment plans or debt forgiveness. The goal is to help individuals regain financial stability while ensuring fair treatment of creditors. During this process, assets may be liquidated or reorganized to settle outstanding obligations.