Maksejõutetus

Maksejõuetus is an Estonian legal term that translates to insolvency or inability to pay. It describes a situation where an individual or a legal entity is unable to meet their financial obligations as they fall due. This can arise from a variety of circumstances, including a lack of sufficient assets to cover debts, a significant drop in revenue, or unexpected expenses.

Insolvency proceedings in Estonia are governed by the Law of Insolvency. The process typically begins with a creditor or the debtor themselves filing an insolvency petition with the court. If the court finds the debtor to be insolvent, it can initiate insolvency proceedings. This may involve appointing an insolvency administrator who will take control of the debtor's assets, assess their financial situation, and attempt to reach a resolution.

The primary goals of insolvency proceedings are to satisfy the claims of creditors to the extent possible and, if the debtor is an individual, to provide an opportunity for a fresh start. For legal entities, insolvency often leads to liquidation, where assets are sold to repay creditors, and the company is dissolved. For individuals, debt restructuring or bankruptcy may be options, aiming to manage remaining debts over time or discharge them under certain conditions. The specific procedures and outcomes depend on the nature of the insolvency and the applicable laws.