In a capitalist economy, an insolvency regime is a fundamental aspect of the legal system. It is a method of dealing with failing firms and individuals who are unable to pay their debts. In such cases, an insolvency regime is required to ensure that the remaining assets are distributed equitably among the creditors, the affairs of the insolvent business or individual are administered in an orderly manner, businesses and individuals are rehabilitated to the greatest extent possible, and any wrongdoing is investigated and punished. Insolvency law can help the economy by directing resources and people toward more productive pursuits. To ensure equitable asset distribution and to prevent abuses of the insolvency system to avoid paying genuine creditors, liquidators and trustees in bankruptcy are granted the authority to enforce claims on assets and reverse past transactions.