What is Insolvency? How it works? What is included in it?

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Accepted Answer

Insolvency is a financial state where a person or company is unable to pay their debts.

Insolvency is a legal process that involves the liquidation of assets to pay off debts.
It can be initiated by the debtor or by creditors through a court order.
The process involves appointing a licensed insolvency practitioner to manage the affairs of the debtor.
The practitioner will assess the debtor's financial situation and determine the best course of action, which may include liquidation, restructuring, or a voluntary arrangement.
Insolvency can include both personal and corporate bankruptcy.
Assets that may be included in insolvency proceedings include property, vehicles, investments, and other valuable possessions.

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