Insolvency proceedings are court proceedings. It is used to liquidate a debtor's assets and distribute the proceeds to his creditors. The Insolvency proceedings can also be conducted over an estate.

Insolvency proceedings are opened only upon application. Any heir, the administrator of the estate and any other guardian of the estate, the executor of the will entitled to administer the estate, and any creditor of the estate shall be entitled to file a petition to open insolvency proceedings against the estate. The opening of insolvency proceedings against an estate shall not be precluded by the fact that the heir has not yet accepted the inheritance or by the fact that the heir has unlimited liability for the estate's debts.

The grounds for opening insolvency proceedings against an estate are insolvency and overindebtedness of the estate. If the heir, the administrator of the estate or another guardian of the estate or an executor of the will applies for the opening of the proceedings, imminent insolvency is also a ground for opening.

The insolvency court shall reject the application for commencement of insolvency proceedings if the decedent's estate is not expected to be sufficient to cover the costs of the proceedings. If insolvency proceedings are opened, the insolvency court appoints an insolvency administrator and requests creditors to file their claims with the insolvency administrator within a specified period.