Insolvency law governs the legal procedures and measures taken when an individual, company, or organization becomes insolvent or over-indebted. The primary goal of insolvency law is twofold: to protect creditors from financial losses and to provide debtors with the opportunity to discharge their debts and, if possible, make a fresh economic start.

Insolvency law serves as an important tool for offering structured solutions to both companies and individuals facing financial difficulties. It integrates legal, economic, and social aspects, ensuring that all parties involved are considered within an orderly process.