WHAT IS BANKRUPTCY. BANKRUPTCY, BANKRUPTCY, INSOLVENCY, BANKRUPTCY PROTECTION WHAT IS. ARRIAGA ASSOCIATES, LAWYER EXPERIENCED IN BANKRUPTCY FOR SMES. IN SPAIN AND ZARAGOZA Reviewed by Momizat on .   WHAT IS BANKRUPTCY? The meeting of creditors, commonly known as bankruptcy or bankruptcy, was the old default and also called bankruptcy. Then called the bank   WHAT IS BANKRUPTCY? The meeting of creditors, commonly known as bankruptcy or bankruptcy, was the old default and also called bankruptcy. Then called the bank Rating: 0
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WHAT IS BANKRUPTCY. BANKRUPTCY, BANKRUPTCY, INSOLVENCY, BANKRUPTCY PROTECTION WHAT IS. ARRIAGA ASSOCIATES, LAWYER EXPERIENCED IN BANKRUPTCY FOR SMES. IN SPAIN AND ZARAGOZA

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WHAT IS BANKRUPTCY?

The meeting of creditors, commonly known as bankruptcy or bankruptcy, was the old default and also called bankruptcy.

Then called the bankruptcy temporary insolvency and bankruptcy called a serious imbalance in assets that had to close and liquidate its assets to pay creditors debts.

The bankruptcy comes to collect both figures, the suspension of payments in which the company can not pay all at once, and bankruptcy, in which the company has to go into liquidation. If an agreement is reached with the creditors will approve the agreement and will lift the bankruptcy. If not approved any agreement the company will be liquidated and paid to creditors according to their percentage of debt and its qualification as a privileged few.

But really, what is bankruptcy?. The bankruptcy is a situation that the judge declares the commercial for a company. The judge issued the statement at the request of the employer or of any creditor. With that statement comes a few effects and a procedure.

What is a bankruptcy? The bankruptcy is done to prevent the company from collapsing by foreclosures and foreclosures when you can not pay and thus prevent the mine closes. The other reason is, that all creditors charged in a more or less proportional. Therefore, the meeting of creditors whose main function is to provide an opportunity for the company to be saved as this is good for everyone, and if not saved, that does not charge the first to arrive but all in proportion to their debt and their privilege.

The bankruptcy is never the problem. The problem is the lack of liquidity of the companies. The bankruptcy may be the solution.

In what situations have to seek a declaration of bankruptcy?. When the employer can not reasonably expects to pay or can not pay its creditors, from the moment you know, has two months to seek bankruptcy protection.

However, if the employer informs the judge that it has initiated discussions with its creditors to achieve adherence to a proposal for agreement before the end of the fourth month, you should seek the assistance of the said creditors if there is insolvent. By this formula, some companies have used to renegotiate the banks and thereby avoid bankruptcy. Arriaga Associates has experience at it.

Is there any way to assume that there is a situation of insolvency and the application requires a declaration of bankruptcy?. Yes, and the employer have to be careful whenever they occur the evidence. It is assumed that a company is in an insolvency situation motivates such a request when there are major performances liens against the property of the company, or when you take over 3 months without pay to the treasury, social security or workers.

Is it mandatory for the employer?. Is mandatory, and if you do not, be declared by the bankruptcy judge as guilty and might even have to respond with their own assets from the debts that the company can not pay. Also risk losing control of the company.

Can a creditor call the meeting of creditors? Yes and has incentives to do so. The first creditor to urge the meeting of creditors will be guaranteed that 25% of your debt will go against the masses, that is, if they charge before ordinary creditors.

What is the voluntary bankruptcy and what is needed?. The voluntary bankruptcy is the one presented by the employer and the need for the present by a creditor. The second is very dangerous for the entrepreneur because you can lose control of the company and may also be that the contest is finally found guilty.

What positive effects has the bankruptcy for the company? The main positive effect is that it paralyzes the old debt and the debt to be paid gradually over several years and discounted, according to the creditors to approve. In addition to all liens will be stopped. Also paralyze executions on goods required for the operation of the company. You can restore supply contracts and leases and even prevent evictions and approved. Providers now rely much more on the company and they do not have the pressure of the old debt. With the idea of a bankruptcy can get the banks are willing to help the company to avoid bankruptcy.

What negative effects have for the employer if the employer does not call the meeting of creditors?. The first thing you need to know the employer is that the bankruptcy when later worse. The second is that if the company can not solve the problem of liquidity at the end can not help it. And if time does not make goods may end up in bad company auctions. And finally, the employer risks losing control of his company, that the contest is rated as guilty and have to respond with their property for the debts of the company.

Arriaga Associates, Bankruptcy Division, has lawyers, economists and consultants, able to manage the bankruptcy process, if possible avoid bankruptcy by negotiating bank or reaching agreements favorable to the company to avoid liquidation as well. And if you could not save the company Arriaga Associates provides solutions that goods are sold more cheaply than through a public bidding process.

Arriaga Associates can finance the bankruptcy process.

Jesús María Ruiz de Arriaga

Lawyer, economist and consultant. Expert in Bankruptcy Law

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