maksmisvõimetuse

Maksmisvõimetus, also known as insolvency, refers to a state where an individual or entity is unable to meet their financial obligations. This typically arises when liabilities exceed assets, or when current cash flow is insufficient to cover debts as they become due. Insolvency can affect both natural persons and legal entities, such as companies.

For individuals, maksmisvõimetus can lead to severe financial distress, impacting their ability to pay for essential living expenses, housing, and credit. Legal consequences may include bankruptcy proceedings, which aim to provide a structured process for creditors to recover some of the owed debts and for the debtor to obtain relief from overwhelming financial burdens.

For companies, insolvency often signals the end of operations, though restructuring and recovery may be possible in some cases. The process typically involves appointing an administrator or liquidator to manage the company's assets and affairs. Depending on the jurisdiction and the specific circumstances, creditors may be prioritized based on the type of debt they hold. Insolvency is a critical concept in financial law and economic stability, with procedures designed to balance the interests of debtors and creditors and to maintain order in the financial system.