Insolvency

Insolvency is the economic and legal condition in which a debtor cannot pay debts as they fall due or, for certain entities, liabilities exceed assets. In Switzerland it may trigger duties to assess going concern, notify the court, seek a moratorium, restructure, or enter debt enforcement and bankruptcy proceedings. Insolvency law balances creditor equality, asset preservation, viable business rescue, and orderly liquidation. Directors and managers must react promptly, because delaying action can create personal liability.