Maximising returns to creditors

The reality of insolvency is that there will be a paucity of assets and, therefore, all creditors will not be repaid at all or in full. Insolvency law is therefore concerned with maximising repayment to creditors. It does so by enabling the office-holder to gather available assets, realize their monetary value, swell that value by utilising any avoidance powers in insolvency legislation, and then distribute the resulting value to all creditors in accordance with their pre-insolvency entitlements and in a rateable manner