Reorganization proceedings are designed to give a debtor some breathing space to recover from its temporary liquidity difficulties or more permanent overindebtedness and, where necessary, provide it with an opportunity to restructure its operations and its relations with creditors.

Another approach is that in addition to having ceased making payments, the debtor must be overindebted where overindebtedness is determined, for example, by the debtor's inability to satisfy its debts as they become mature because its liabilities exceed its assets.

Reorganization procedures are designed to give a debtor some breathing space to recover from its temporary liquidity difficulties or more permanent overindebtedness and, where necessary, provide it with an opportunity to restructure its operations and its relations with creditors.

One example requires that, in addition to having ceased making payments, the debtor must be overindebted, where overindebtedness is determined, for example, by the debtor's inability to satisfy its debts as they become mature because its liabilities exceed its assets.

Codes of conduct are also needed to address the risk that fast growth and overexpansion can lead to overindebtedness by the poor and undermine the long-term growth and prospects of microfinance itself.

It requires a fundamental revision of the debt/debt-rescheduling/ overindebtedness triangle and an overhaul of official development assistance, which is exponentially decreasing even while remaining the principal source of financing for the least developed countries.

The assumption is that such description or limit is in the interest of the debtor since the debtor would be protected from overindebtedness and would have the option of obtaining additional credit from another party.

Reorganization procedures are designed to give an entity some breathing space to recover from its temporary liquidity difficulties or more permanent overindebtedness and, where necessary, provide it with an opportunity to restructure its operations and its relations with creditors.

Some insolvency or business governance laws include provisions such as that the debtor must make an application within a period of time varying from two weeks to 60 days after being unable to pay its debts as they become due or after learning of its overindebtedness determined by reference to its balance sheet.

Some insolvency or business governance laws include provisions that require the debtor to make an application within a period of time (varying from two weeks to 60 days) after being unable to pay its debts as they become due or after learning of its overindebtedness determined by reference to its balance sheet.