What is an Insolvency Attorney?
Insolvency refers to a status of diminished legal capacity enforced by the courts on persons unable to meet their financial obligations. An insolvency attorney is a legal body tasked to assist in the insolvency, restructuring, and/or sequestration process. When a company, organisation, or individual is faced with financial hardship an insolvency attorney is called in to deal and assist with the situation. The insolvency attorney will typically advise the client or act for their creditors and other stakeholders.
An insolvency attorney may assist in restructuring the debts of a company, organisation, or individual, but if the company, organisation, or individual cannot be rescued because it has, for instance, insufficient finances or assets to meet creditor claims, the insolvency lawyer may assist in the insolvency process. Simply put, when a person can no longer pay his debts, or his liabilities exceed his assets, an insolvency lawyer, or insolvency lawyer South Africa, will assist the debtor in either finding a solution in restructuring debts, and if a solution cannot be met, the insolvency lawyer will assist in the proceedings of becoming insolvent and assist in sequestration of the debtor’s estate. Insolvency attorneys can assist in all areas of the process.