1 . 1 . D E P L O Y M E N T A N D D I S T R I B U T I O N

All legal systems provide for rules and mechanisms by means of which a creditor may

enforce an obligation against a debtor when the debtor fails to perform at the time

due. But equally common to legal systems is a specific and distinct regime for the

situation where the debtor not only fails to perform in respect of a single obligation,

but generally fails to perform obligations as they become due. What i s more, the basic

contours of such regimes are generally similar and 'obey time-honoured and polished

economic reason'. They consist of collective procedures, which restrain individual

collection efforts by creditors while divesting the debtor to some extent." The rationale

for a distinct regime is that the situation of insolvency raises particular issues which

are not - and cannot be - adequately addressed by the rules governing a debtor's

default on a single debt. Where a debtor becomes insolvent and multiple cred itors seek

to enforce their debt, two related but distinct issues are raised which insolvency law

is specifically designed to address. On the one hand, the value (and use) of the assets

must be determined and realised (which may be called the question of deployment);

on the other hand, the value/proceeds obtained - or, conversely, the loss suffered -

must be distributed over those involved (which may be called the question of distrib

u t i o n ) .