insolvency regimes

Insolvency regimes are legal frameworks designed to address situations where individuals or businesses cannot pay their debts. They provide structured processes for managing financial distress, allowing debtors to reorganize their finances or liquidate assets to pay creditors. Common methods include bankruptcy, where debts are discharged under court supervision, and administration, where a debtor's business is managed to maximize recovery for creditors. These regimes aim to balance the interests of debtors seeking a fresh start and creditors wanting to recover as much as possible. Each country has its own specific laws and procedures governing insolvency.