Fizetésképtelen

Fizetésképtelen is a Hungarian term that translates to "insolvent" or "unable to pay" in English. It describes a situation where an individual or a company lacks the financial resources to meet their debt obligations as they become due. This can refer to a temporary cash flow problem or a more fundamental inability to pay debts arising from a business's failure or an individual's over-indebtedness.

When a company becomes fizetésképtelen, it may lead to bankruptcy proceedings. In such cases, a court typically appoints a liquidator to manage the company's assets and distribute them among creditors according to a legal hierarchy. For individuals, fizetésképtelenség can result in personal bankruptcy, a legal process designed to help over-indebted individuals manage their debts, often through a repayment plan or the sale of assets.

The concept of fizetésképtelen is a crucial element in financial law and insolvency procedures. It signifies a point where a debtor can no longer fulfill their financial commitments, triggering legal mechanisms to address the situation and protect the interests of creditors and, in some cases, the debtor themselves. Recognizing and acting upon fizetésképtelen is vital for maintaining economic stability and ensuring fair treatment within financial relationships.