Faliment

Faliment is a legal term used in several civil-law jurisdictions to describe the insolvency of a debtor, whether an individual or a company. It denotes either the state of being unable to meet financial obligations as they come due or the formal insolvency proceedings initiated to resolve the debtor's liabilities. The aim is to ensure an orderly realization of the debtor's assets and fair treatment of creditors, while potentially preserving viable parts of the business.

In a faliment proceeding, a court typically takes control of the debtor's assets and appoints a trustee or administrator to manage the bankruptcy estate. The court may impose an automatic stay on most collection actions. Creditors file claims, which are verified and ranked according to priority. The assets are liquidated or allocated to satisfy allowed claims. Depending on the jurisdiction, the process may result in liquidation (closing the business and selling assets) or in a reorganization plan that allows the debtor to continue operating under restructuring terms.

Outcomes vary: many systems provide for the discharge of remaining unsecured debts after satisfactory fulfillment of a plan or completion of liquidation, subject to exceptions (for example, secured obligations, taxes, or fraud-related penalties). Debtors may face restrictions on management or director roles during the procedure.

Internationally, faliment regimes are often shaped by insolvency laws and, in cross-border cases, may follow models such as the UNCITRAL Model Law on International Insolvency. The specific rules and terminology differ by country, making the precise procedures and consequences country-specific.