insolvency resolution methods

Insolvency resolution methods are procedures used when a person or company can't pay their debts. They aim to reorganize or settle debts fairly. The main approaches include: 1) **Liquidation**—selling assets to pay creditors when reorganization isn't possible; 2) **Reorganization**—developing a plan to restructure debts and continue operations; and 3) **Debt settlement**—negotiating reduced payments or terms with creditors. These methods ensure an orderly process to resolve financial distress, protecting both the debtor and creditors, and enabling a fair distribution of available assets or debt relief.