Insolvency is a state of financial distress in which a business or person is unable to pay their bills. It can lead to insolvency proceedings, in which legal action is taken against the insolvent person or entity, and assets may be liquidated to pay off outstanding debts.
With respect to the financial sector, an effective insolvency law enables financial institutions to curtail the deterioration of the value of their assets by providing them with a means of enforcing their claims. In that context, it can also facilitate the development of capital markets. In case of a financial crisis in which the entire enterprise sector is in distress, an effective insolvency law can provide a useful means of ensuring that private creditors contribute to the resolution of the crisis. Insolvency is process which is simplified and taken care of by insolvency lawyers.
Insolvency lawyers engage in all stages of the insolvency process, from negotiating company voluntary arrangements, to administration and receivership. They also engage in the liquidation stage, where the individual or company’s assets are taken to pay off the outstanding debt. One can specialize in insolvency law by acquiring knowledge and skills in this sphere. Considering the need, the BSE Institute Ltd. offers LLM in Insolvency Law.