Insolvency and Bankruptcy Laws

Insolvency and Bankruptcy Laws provide a legal framework for individuals and companies unable to pay their debts. Insolvency occurs when liabilities exceed assets, prompting financial distress. Bankruptcy is a formal process where a debtor’s assets are evaluated and distributed to creditors to settle debts fairly. These laws aim to facilitate a structured resolution, giving debtors a chance to reorganize or discharge debts while protecting creditors' rights. They promote transparency, fairness, and efficiency in resolving financial failures, helping to restore economic stability and giving honest debtors a fresh start after full or partial repayment.