Insolvency Process

Insolvency is when a person or company cannot pay their debts as they become due. The insolvency process involves assessing their financial situation, where a trustee or insolvency practitioner reviews their assets and liabilities. Depending on the situation, they might negotiate repayment plans, or in some cases, assets are sold to settle debts. The goal is to fairly distribute available resources among creditors and, if possible, help the debtor regain stability. This process ensures debts are resolved systematically, either through restructuring or legal procedures like bankruptcy or insolvency proceedings.