Personal insolvency occurs when an individual cannot pay their debts as they become due. This situation can arise from various factors, such as job loss, unexpected medical expenses, or poor financial management. When someone is insolvent, they may seek legal solutions to manage or eliminate their debts. In many countries, individuals facing personal insolvency can file for bankruptcy or enter into a debt management plan. These options provide a structured way to address financial difficulties, allowing individuals to either discharge some debts or create a repayment plan. Seeking advice from a financial advisor or a bankruptcy attorney can help navigate these processes.