Insolvency law refers to the legal framework that governs the financial state of individuals and entities when they are unable to pay their debts. It provides a structured process for dealing with insolvency, which typically involves the liquidation of assets to repay creditors or the reorganization of debts to enable the debtor to continue operating. Insolvency laws outline the rights and obligations of debtors, creditors, and insolvency practitioners, establish procedures for initiating insolvency proceedings, and regulate the distribution of assets or the implementation of debt restructuring plans. The objective of insolvency law is to provide a fair and orderly resolution of financial distress while protecting the interests of both debtors and creditors.