maksejõuetusest

Maksejõuetus, or insolvency, refers to a state where an individual or entity is unable to meet their financial obligations. This can manifest in several ways, including a lack of sufficient liquid assets to pay debts as they fall due, or a situation where total liabilities exceed total assets. When an individual or business becomes insolvent, it often signals a severe financial distress.

Insolvency can lead to formal legal proceedings designed to address the situation. For individuals, this might involve bankruptcy, which can result in the liquidation of assets to pay creditors or a structured repayment plan. For companies, insolvency can trigger administration, receivership, or liquidation. These processes aim to manage the insolvent entity's affairs in a way that is equitable to creditors, and in the case of liquidation, to wind up the business and distribute any remaining assets.

The causes of insolvency are varied and can include poor financial management, unexpected economic downturns, significant debt burdens, or a decline in revenue. Early recognition of financial difficulties is crucial, as it can allow for more options to be explored before a situation becomes irreversible. Legal frameworks surrounding insolvency aim to provide a structured way to deal with debt and financial failure, offering a path forward for those facing insurmountable financial challenges.