Bankruptcy. Does bankruptcy damages the image of a company? And if an SME. Zaragoza (Spain) lawyers now Reviewed by Momizat on .   Bankruptcy DOES DAMAGE THE IMAGE OF A COMPANY? The individual entrepreneur does not want to hear about bankruptcy because they think it will damage the image   Bankruptcy DOES DAMAGE THE IMAGE OF A COMPANY? The individual entrepreneur does not want to hear about bankruptcy because they think it will damage the image Rating: 0
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Bankruptcy. Does bankruptcy damages the image of a company? And if an SME. Zaragoza (Spain) lawyers now

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Bankruptcy DOES DAMAGE THE IMAGE OF A COMPANY?

The individual entrepreneur does not want to hear about bankruptcy because they think it will damage the image of yourcompany. However, what you think in fact that hurt his image, and his company, his great personal project, it remains to be a projection of his own person or his personal ambitions.

Reasons for the employer keeps a personal nature to the limit to consider this measure. As much as the going gets more difficult, but deteriorate the performance of the company, the employer hopeless fight to save his company tried to avoid, without much hope, the possibility of bankruptcy. This is the most common situation in SMEs.

But few know that bankruptcy is a protective measure. A protective measure that can save the company, which can minimize the effects of a bankruptcy or that may, at least, to save part of business assets. But they do not know is that many entrepreneurs are also staking their own present and future personal property not to use the bankruptcy that the law is already longer able to bind. Because yes, the bankruptcy proceedings, when given the objective circumstances, requires employers to encourage the meeting of creditors. If not, can any creditor, calling the meeting of creditors, and the employer may lose control of the company, and if the circumstances are, I plead guilty with the contest as the possibility that the owner or manager to respond with their own personal wealth for present and future business debt.

But you can not take the decision not to call the meeting of creditors to avoid damage to corporate image. More damaging to the current company will be insolvent in the fact that suppliers do not want to provide, banks are calling for lawsuits, could not serve customers, and ultimately, the work is not. More damaging to the personal image of the entrepreneur is having to put their own money or put their own assets as security personnel, so it takes the risk of personal ruin forever.

The truth is that bankruptcy is not as damaging to corporate image. Suppliers and banks already support and understand this situation in general terms the problems of the crisis. All blame the corporate crisis and banks that have closed the tap. Do not take it personally but as a situation of the times.

Customers do not care as much as they are not affected by the bankruptcy. Moreover, you can even get a greater understanding and involvement because surely they may be having too bad.

The contest of creditors can be a good tool to manage the insolvent so that consideration should be avoided. For example in my post titled: “Getting through the insolvent business,” which can be accessed by clicking on: http://www.arriagaasociados.com/?p=378 , talking about how the bankruptcy may be a good figure to save the company achieve or to gain advantages in negotiations.

In bankruptcy, or the possibility of announcing this, you can refinance debts to banks or to reach agreements. Through bankruptcy you can stop payment of debts and interests prior to his statement, and stop foreclosures and evictions, and can raise a new business project. If the company’s business will be saved, and if not there, you can reduce its negative impacts, saving the less the employer.

To avoid greater evils as to damage the image of the company, it is important to manage well the communication and take a proactive approach. Avoid providers to stop serving and you have to treat them well to stay on.

To avoid damage image of a bankruptcy, and to get the benefits of it is very important to have a good multidisciplinary team consisting of lawyers, economists, consultants and advisers. A good consultant is essential here.

If you decide it might consider having services Arriaga Associates consulting experience in the business of refinancing, bankruptcy, debt collection and feasibility plans.

Jesús María Ruiz de Arriaga Remírez.

Lawyer economist specializing in bankruptcy.

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