WHAT IS A BANKRUPTCY ? WHAT IS IT? WHY DID THE BANKRUPTCY LAW? WHAT ARE THE CONSEQUENCES OF A BANKRUPTCY? ARRIAGA ASSOCIATES BANKRUPTCY DIVISION, ATTORNEYS AND EXPERTS CONSULTANTS FOR SMES BANKRUPTCY. NOW ALSO IN ZARAGOZA. THE BANKRUPTCY IS IT? Reviewed by Momizat on .   WHAT IS A BANKRUPTCY? In this article we give an intuitive idea of ​​what is and what it does. The bankruptcy is a legal to save the company and to ensure tha   WHAT IS A BANKRUPTCY? In this article we give an intuitive idea of ​​what is and what it does. The bankruptcy is a legal to save the company and to ensure tha Rating: 0
Inicio » Blog Arriaga Asociados » WHAT IS A BANKRUPTCY ? WHAT IS IT? WHY DID THE BANKRUPTCY LAW? WHAT ARE THE CONSEQUENCES OF A BANKRUPTCY? ARRIAGA ASSOCIATES BANKRUPTCY DIVISION, ATTORNEYS AND EXPERTS CONSULTANTS FOR SMES BANKRUPTCY. NOW ALSO IN ZARAGOZA. THE BANKRUPTCY IS IT?

WHAT IS A BANKRUPTCY ? WHAT IS IT? WHY DID THE BANKRUPTCY LAW? WHAT ARE THE CONSEQUENCES OF A BANKRUPTCY? ARRIAGA ASSOCIATES BANKRUPTCY DIVISION, ATTORNEYS AND EXPERTS CONSULTANTS FOR SMES BANKRUPTCY. NOW ALSO IN ZARAGOZA. THE BANKRUPTCY IS IT?

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WHAT IS A BANKRUPTCY?

In this article we give an intuitive idea of ​​what is and what it does.

The bankruptcy is a legal to save the company and to ensure that all creditors have the same preference if they have the same privilege.

When a company is insolvent in a transient or irreversible (ie no money to pay its creditors, suppliers, banks, employees, etc..) Must, when required by law, apply for bankruptcy. It’s not something that the employer can decide. If it does could be considered guilty in the bankruptcy is finally done. Because later I urge the employer or be a creditor to do so.

A competition is very dangerous convicted for the employer because it could have to respond with their own assets for company debts.

Well the meeting of creditors can have two entirely different causes:

‘Because the company accumulates too many losses and is in bankruptcy, or

‘Because you just have liquidity problems but the company makes a lot of money and have excellent prospects. In turn, a company may have liquidity problems on time or its liquidity problems may be insurmountable.

Entrepreneurs also have an obligation to call the meeting of creditors when they are considering they can not afford in the imminent future. It is no longer a current insolvency but an imminent insolvency.

WHAT IS IT?

The bankruptcy has two functions:

a) avoid the company is liquidated, the debt is to stop the company to reorganize and negotiate with your creditors;

b) Establish a procedure for all creditors to charge in proportion to their debt, for the same level of priority, such as the more general case for unsecured debts considered.

WHY TEST THE BANKRUPTCY LAW?

Now, at this time being passed a bankruptcy reform that can be viewed at the following link:

The legislature passed a bankruptcy law to prevent companies had to close due to insolvency and to ensure that creditors are charged in an organized manner and proportion of debt. Of course, this law was made in an economic boom where the crisis was very unusual business.

WHAT ARE THE MAJOR CONSEQUENCES?

Declared the contest the company no longer able to pay previous debts. The judge will appoint the receivers (usually one for most cases). The company will normally be directed and managed by the employer and to certain acts shall consult, or obtain authorization from the trustee in bankruptcy. They give a very short time to the creditors, usually 15 days (abbreviated contests for SMEs, as usual) to communicate their credits. After several months the process will clarify these claims and are classified according to privilege and priority of payment. The employer could have filed a proposed arrangement with creditors or may present later when the common phase ends. If approved the agreement the company will lift the bankruptcy. If agreement is not approved or the employer asks the settlement, the company will be liquidated. This process will be conducted by the administrator.

Another important effect of the declaration of bankruptcy is that it blocks the execution of productive assets and foreclosures. You can cancel certain contracts evictions and restore essential to the functioning of the company such as rent, power supplies, etc.

What are the benefits to the employer of the declaration of insolvency?

No employer should delay a bankruptcy because if the conditions and not done in time, would violate the law at all, since more sooner or later someone will ask the bankruptcy proceedings with worse consequences for the employer or for the company. Well, we have enormous benefits for the company, with notification to the court the start of talks to negotiate a proposal for agreement may at times refinance because banks do not want to talk about bankruptcy. Also the company is in a major boost for the previous debts are not paid at the moment but as established by the agreement, in years, with significant remove. Also paralyze unique executions and liens on property necessary for business. The employer will maintain control of the company and may reduce the risk of having to respond with their own personal assets from debts.

In Arriaga Associates are experts in managing bankruptcy and we do not just handle the bankruptcy but can negotiate the financing and refinancing business that can save the company. We also do all the technical process financial, economic and legal. We have professionals from different areas of the company.

Arriaga Associates can finance the bankruptcy process.

Maria Jesus Ruiz de Arriaga

Lawyer, economist, consultant. Bankruptcy law specialist.

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