Insolvency Proceeding

Insolvency proceedings are legal processes that occur when an individual or organization cannot pay their debts. These proceedings aim to either restructure the debt to allow for repayment or to liquidate assets to pay creditors. They provide a framework for managing financial distress, protecting both the debtor and creditors. Essentially, it helps balance the interests of those who owe money and those who are owed money, ensuring that assets are handled fairly and transparently while allowing the debtor a chance to recover financially, if possible.