If a person is not able to pay back his dues then the creditors can claim for their payment in the legal court. As soon as the matter reaches the court, the involvement of the legal advisor has to be made. The legal advisor checks all the books, records, and accounts of the parties. An investigation and valuation of the asset of the client are done. On the basis of the assets, and stock, the final payment is made to the party who claims. It is the sole responsibility of the financial advisor to declare the insufficiency of the amount to pay back. It is the work of the advisory company to declare that the individual is insolvent. As the insolvency is declared, the client is no more authorized to pay back the amount. A legal notice is printed and circulated to the authorized regulators to inform them about the insolvency of the party.