Legal framework for debt restructuring in Latvia: from rehabilitation to legal protection process

The aim of this study is to explore the significance and effectiveness of debt restructuring in the private sector, considering global economic trends and challenges. The research analyzes the objectives of the restructuring process as they evolve with changes in the regulatory framework, examining their application and adaptation to prevent insolvency and enhance financial stability. The study employs analytical, inductive, and deductive research methods. The historical research method is applied to uncover the development and legal transformation of corporate debt restructuring, as well as to outline future trends. Additionally, the logical-constructive research method is utilised. The key findings reveal that effective cooperation between creditors and debtors, along with transparent communication, is crucial for successful debt restructuring.