insolvency reform

Insolvency reform involves changes to laws and processes that manage how individuals or companies handle situations where they cannot pay their debts. The goal is to make it fairer and more efficient for debtors to resolve their financial difficulties while protecting creditors’ rights. Reforms may include simplified procedures for bankruptcy, promoting debt relief options, encouraging restructuring over liquidation, and reducing stigma. Overall, these changes aim to provide a balanced approach that helps troubled entities recover when possible, or fairly wind down operations when necessary, fostering a healthier economic environment.