Maksukyvyttömyystila

Maksukyvyttömyystila, often translated as insolvency or bankruptcy, refers to a state where an individual or a legal entity is unable to meet their financial obligations as they fall due. This can manifest in several ways, including a lack of sufficient liquid assets to pay debts, or a situation where liabilities exceed assets. The specific legal definition and consequences of insolvency can vary depending on the jurisdiction.

In personal insolvency, an individual may be unable to pay rent, mortgages, loans, or other bills. This can lead to debt collection efforts, legal action, and potentially a declaration of bankruptcy. Bankruptcy proceedings typically involve the appointment of an administrator or trustee who manages the debtor's assets and distributes them to creditors according to legal priorities. The goal is often to provide the debtor with a fresh financial start after a period of restructuring or liquidation.

For companies, insolvency can arise when a business cannot pay its suppliers, employees, or lenders. This can trigger insolvency proceedings such as administration, liquidation, or receivership. Administration aims to rescue the company or achieve a better outcome for creditors than liquidation. Liquidation involves selling off the company's assets to pay off debts, and the company ceases to exist. Receivership occurs when a secured creditor appoints a receiver to take control of specific assets to recover their debt. The underlying principle in both personal and corporate insolvency is the fair distribution of available resources to creditors when the debtor cannot fulfill all their financial commitments.