Insolvency Law
Insolvency law refers to the legal framework surrounding individuals or businesses that cannot pay their debts. It provides a structured process for dealing with financial distress, allowing debtors to either liquidate assets to settle debts or restructure their finances to regain solvency. Key concepts include bankruptcy, which is a legal status indicating insolvency, and proceedings such as voluntary agreements or court-administered bankruptcies. Insolvency law aims to balance the interests of creditors seeking repayment with the rights of debtors seeking relief, ultimately providing a pathway for financial recovery or orderly liquidation.
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Insolvency law refers to the legal framework that governs the situation when an individual or business cannot pay their debts. It aims to balance the interests of debtors, who seek relief from overwhelming financial obligations, and creditors, who want to recover what they are owed. This law provides processes such as bankruptcy, where assets may be liquidated to pay debts, or restructuring, allowing debtors to reorganize and continue operations. Ultimately, insolvency law promotes fairness in financial distress, enabling a fresh start for debtors while aiming to satisfy creditors as much as possible.