Image for insolvency petitions

insolvency petitions

An insolvency petition is a formal request made to a court to declare that an individual or company cannot pay their debts as they become due. It is a legal step to seek relief from financial difficulties, allowing for formal procedures such as restructuring or liquidation. The petition can be filed by the debtor or creditors and serves as a basis for the court to evaluate the financial situation and determine appropriate actions to manage or settle outstanding liabilities.