Financial distress is a state wherein the organizations are not able to fulfill its obligations for a particular time segment. It's an indicator to the company to take a good enough degree so that you can safeguard it from being bankrupt, in fact there's a threadline distinction among being in state of distress and moving to insolvency. The recent outbreak of pandemic COVID-19 has pushed towards financial distress to many SMEs, Self-assist institutions, entrepreneurs and groups as well. This paper is an attempt to analyse the various measures that can be used as an option to come out from financial distress. Objectives  To identify the range of insolvency relief tools that exist in order to mitigate liquidity shortages and avoid unnecessary bankruptcies that may follow from the COVID-19 pandemic.  To assess the several Insolvency Provisions done by state to safeguard the industries. To identify the segments facing financial distress.