WHAT IS THE BANKRUPTCY FOR AN SME. THE CONTEST IS PAYABLE. THE MEETING OF CREDITORS IS A SOLUTION FOR A SITUATION OF INSOLVENCY. LAWYERS ASSOCIATED ARRIAGA BANKRUPTCY EXPERTS FOR SMES IN SPAIN AND ZARAGOZA.
What is bankruptcy for an SME?
The bankruptcy is a legal obligation to an employer when it reasonably expects may or may not regularly pay their creditors. In failing to comply with this legal obligation can have serious responsibilities to the employer because, besides being able to lose control of the company, could be sentenced to having to pay the debts, responding with their present and future. Under Article 5 of the bankruptcy law is to be made in the two months since you know the solution, which is presumed when it has failed to pay most of its creditors, if there are liens that affect generally, when you disposals assets of the company for very low or when leaving for three months to pay taxes, social security, salaries, etc..
However, we must see bankruptcy as a solution. The bankruptcy is not the problem, the problem is the lack of liquidity. To solve the problem of lack of liquidity set the figure of bankruptcy as a way to stop all, to stop the debt prior to the declaration of the contest, giving the company time to reorganize their business and allow creditors to charge all of a more organized and more widespread.
The bankruptcy proceedings, as we say, for debts prior to the declaration of insolvency. If an agreement is achieved creditors will be paid to creditors in several years and take away important. But they also paralyze executions and liens that exist on property necessary for the company. Rehabilitation may be necessary supply contracts for the company and even rent on offices and warehouses.
Sometimes, the mere possibility of raising an arrangement with creditors, banks that have invested in the company, will be willing to reach a solution for financing or refinancing to avoid bankruptcy.
Although one can not save the company, with time, you can sell the assets of the company to a higher value than would be obtained in a judicial sale.
But not to urge the bankruptcy will not mean the end it does not occur anyway. If we saved the situation, sooner or later, a creditor request (there is a prize to the first creditor to do so) and the consequences will be terrible for the company and the employer. A bankruptcy will make it much more difficult late salvation of the company, the risks of settlement with a sale of goods at bargain prices, the employer may lose control and even the competition may be classified as guilty.
In Arriaga Associates we have lawyers, economists and consultants to manage and even bankruptcy to avoid it. She’s used to manage the bankruptcy proceedings, to negotiate with banks and creditors, to prepare business plans and feasibility studies and develop proposals with creditors.
We therefore suggest that you contact us and we will propose a solution. Fill out the Online consultation explaining your case or call us at the number listed on the form. Your inquiry will be free and not bound to hire our services. If you do have an office with professionalism and dedication will ensure their interests.
Jes√ļs Mar√≠a Ruiz de Arriaga
Lawyer and economist. Bankruptcy law expert.