What is the primary concern of insolvency law?

The primary concern of insolvency law is regulating the financial obligations of debtors. This area of law addresses the situation where individuals or entities are unable to meet their financial commitments, and it provides a framework for managing those obligations in a structured manner. Insolvency law ensures that the rights of creditors are preserved while also allowing debtors to resolve their debts in an orderly way, which may include restructuring, negotiation, or, in some cases, liquidation of assets.

The focus on regulating financial obligations means that insolvency law considers how debts should be repaid, whether through payment plans or other means, and ensures that the processes involved are fair and transparent for all parties. This includes determining the priority of claims against the debtor's assets and ensuring equitable treatment of creditors.

While facilitating business bankruptcy procedures and overseeing legal settlements are related to insolvency, the fundamental aim is to address debt regulation overall, which encompasses much broader aspects than just business bankruptcies or settlements. Determining ownership of assets, although relevant in specific insolvency cases, is not the central concern of insolvency law itself.