fizetésképtelensége

Fizetésképtelenség is the Hungarian term for insolvency or bankruptcy. It describes a state where an individual or a legal entity is unable to meet their financial obligations as they become due. This can manifest in several ways, including a lack of sufficient liquid assets to pay immediate debts or a general inability to repay debts over time.

In Hungary, insolvency proceedings are governed by specific laws that aim to either restructure the debtor's finances to allow them to continue operating (in the case of businesses) or to liquidate assets to repay creditors as equitably as possible. For individuals, this process is often referred to as personal bankruptcy. For companies, it can involve reorganization or liquidation.

The triggers for insolvency can include a significant drop in revenue, excessive debt accumulation, poor financial management, or unforeseen economic downturns. When a company or individual becomes insolvent, creditors may initiate legal proceedings to recover their funds. The process typically involves a court or a designated administrator who oversees the management of the debtor's assets and liabilities. The ultimate outcome depends on the specific circumstances and the applicable legal framework, aiming to provide a resolution for all parties involved.