Insolvency, also known as bankruptcy, is a legal proceeding initiated when a person or business is unable to repay outstanding debts or obligations. Deciding whether to file for insolvency can be a difficult decision, and it is important to carefully consider all available options before proceeding with an application. There are several different types of insolvency proceedings available, and the appropriate option will vary depending on the specific circumstances of the individual or business.
Generally, the process of applying for insolvency involves filing a petition with the appropriate court. The petition must include detailed information about the debtor’s financial situation, including a list of assets and liabilities. The court will then review the petition and determine whether to grant the insolvency order. If the order is granted, the debtor will be placed under the protection of the court and will be given a period of time to develop a plan to repay their debts. During this period, creditors are typically barred from taking any action to collect their debts.
