Insolvency frameworks

Insolvency frameworks are legal structures and processes designed to help individuals or businesses that cannot pay their debts. These frameworks provide a way to either reorganize debt—allowing the debtor to manage payments and continue operations—or liquidate assets to repay creditors. The goal is to balance the interests of debtors, who need relief, and creditors, who seek repayment. Insolvency laws vary by country, but they generally aim to ensure fairness, transparency, and a systematic approach to resolving financial distress. This helps stabilize the economy and allows individuals and businesses to have a fresh start when necessary.