Insolvency Law

An insolvency regime is a necessary part of the legal system in a capitalist economy. It is a means for dealing with businesses that fail, and individuals who cannot pay their debts. An insolvency regime is required to ensure that in those circumstances the remaining assets are equitably distributed amongst the creditors, the affairs of the insolvent business or individual are administered in a fair and orderly fashion, businesses and individuals are rehabilitated to the extent possible, and that any wrongdoing is investigated and punished.