insolvency practices

Insolvency practices refer to the legal and financial procedures used when individuals or businesses cannot pay their debts. The goal is to fairly distribute the debtor's assets among creditors and, where possible, help the debtor reorganize or recover financially. Common processes include bankruptcy, where assets are liquidated, or insolvency proceedings, which may involve restructuring debts. These practices are designed to manage financial failure responsibly, ensuring transparency and fairness for all parties involved, while providing opportunities for the debtor to resolve their financial issues or discharge debts legally.