Personal Insolvency
Personal insolvency occurs when an individual cannot pay their debts as they become due. It is a legal process designed to help individuals manage or eliminate their financial difficulties. In many jurisdictions, there are various options available, such as debt relief orders, individual voluntary arrangements, or bankruptcy, each providing different paths for addressing outstanding debts. The goal is to provide a fair solution for both the debtor and the creditors while allowing the individual to regain financial stability and rebuild their life after overcoming their financial challenges.
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Personal insolvency occurs when an individual is unable to repay their debts as they become due. It reflects a financial state where debts exceed assets, leading to an inability to meet obligations like loans and credit card bills. Individuals facing insolvency may seek legal solutions, such as declaring bankruptcy or entering into an Individual Voluntary Arrangement (IVA), which can help manage and reduce debts. The aim is to find a way to resolve financial issues and allow the individual to make a fresh start while complying with legal obligations regarding their debts.