Running a business involves a huge amount of risk, and even a temporary loss of liquidity can mean serious problems. We know this very well, because we help entrepreneurs on a daily basis in financial difficulties and help prepare scenarios for times of crisis.
Entrepreneurial bankruptcy process is intended to safeguard the interests of both the debtor, i.e. a company in financial difficulties, and in particular the management of that company, and its creditors.
A primary aspect, One thing to pay attention to when considering filing for bankruptcy is to check whether the entrepreneur is insolvent and has insolvency capacity. This means checking whether bankruptcy proceedings are possible for the form in which the business is conducted.
We realise that the economic bankruptcy of a company is a professional blow, which, as an entrepreneur, is difficult to deal with on your own, so it is worth enlisting the help of experienced professionals to be able to successfully navigate through the insolvency process.
This is in other words the loss of the ability to meet due monetary obligations.
This is presumed to be the case when there is a 3-month arrears of debt.
For legal persons and entities that are not legal persons a state of insolvency also arises when the amount of liabilities is greater than the value of the assets held, and this condition persists for at least 24 months.
In order to be able to conduct insolvency proceedings it is necessary for the company to have assets to cover the costs of the proceedings, as well as to satisfy, albeit to a small extent, the claims of creditors.
At the same time, the analysis of this issue is complex in relation to assets on which security interests in rem, such as mortgages or pledges, have been established.
In accordance with the provisions of the Bankruptcy Law, It is not possible to declare business bankruptcy if a company has only one creditor.
Hence, in order for a bankruptcy petition to be granted at least two creditors must be named in it.
This was just a brief description of the conditions to be met.
If you have any questions or concerns, please feel free to contact us and we will be happy to clarify them for you.
Therefore, a quick contact from your side will allow us to assess your situation and propose the best strategy of action for your company.
When the first signs of impending insolvency appear, The financial situation of the company should be carefully analysed. At an early stage, you still have the option of numerous restructuring solutions. Once a state of insolvency exists, the number of possible measures decreases.
Remember that as an entrepreneur, you are obliged to file for bankruptcy within 30 days of the occurrence of the condition. Ignorance or wilful disregard of this obligation can result in very severe consequences for those representing the company.
Members of the company's board of directors are jointly and severally liable for the company's liabilities and tax arrears.
For these reasons, yes it is important to diagnose the occurrence of a state of insolvency entrepreneurs and effective submission of the application to file for bankruptcy in due time.
What does it consist of? A pre-prepared liquidation (pre-pack) is a procedure that allows the assets of an insolvent debtor to be sold quickly and in accordance with the will of the parties to an investor in a non-tendered insolvency procedure.
The greatest advantage of the prepared decommissioning for a failing company it is, That it allows the bankrupt's business to continue to operate. For an investor who wishes to acquire such a company, the greatest benefit is the enforcement effect of the sale, i.e. the acquisition of the bankrupt's property free of liabilities and encumbrances, which is not possible with a regular sale of the company, because then the the purchaser is jointly and severally liable with the transferor for its obligations in relation to the operation of the business.
A prepared liquidation may consist of court-approved terms of sale not only the entire enterprise of the debtor, but also a significant part of it or only a valuable asset within the framework of bankruptcy proceedings. Importantly, the insolvent entrepreneur who plans to benefit from the prepared liquidation has the possibility to consciously choose the buyer indicated in the application, at the price specified in the application and accepted by the court.
This structuring of the relationship between the insolvent company and the purchaser of the business or part of it also allows for other arrangements to be made for the continuation of the business. The speed of these proceedings should also be emphasised - the sale should take place within 30 days from the day the court order approving such sale becomes final, which is clearly beneficial for all participants in these proceedings and also translates into a reduction in the costs of these proceedings and thus a higher degree of satisfaction of creditors.
The law sets out in detail who can apply for approval of the terms of sale in a prepared liquidation and how. If you are interested in this topic - please feel free to contact our advisor, who will clear up any doubts you may have.
The commencement of bankruptcy proceedings means that the debtor's financial situation is not among the best. However, insolvency is not always a permanent phenomenon, sometimes entrepreneurs manage to find ways to improve the operation and profitability of the business even during the insolvency proceedings.
Then a new rescue scenario for the company becomes possible, i.e., the submission of proposals for arrangement to creditors. If they are favourably received by the creditors and the entrepreneur makes it plausible that the arrangement can be implemented, the court may terminate the bankruptcy proceedings by issuing an order approving the arrangement.
Among the most relevant layout proposals are:
Whether it is your business that is in bankruptcy or whether it is your counterparty that is in bankruptcy, it is worth considering whether an arrangement will meet your expectations to a higher extent than liquidation bankruptcy.
Consumer bankruptcy is the type of legal proceeding provided for for consumers, i.e. people who are not in business. If you have found yourself in a difficult situation contact us - We will help you find a solution tailored to your situation.
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Entrepreneur bankruptcy proceedings are proceedings that should be initiated when an entrepreneur is in a state of insolvency, i.e. when he has lost the ability to settle his due monetary obligations and, in the case of companies, also when his monetary obligations exceed the value of his assets, and this state of affairs persists for a period exceeding twenty-four months. Bankruptcy aims to liquidate the entrepreneur's assets and satisfy its creditors. Importantly, in the event of financial problems, the timely filing of a bankruptcy petition may relieve the persons representing the limited liability company from liability for certain debts of the company.
You are concerned about declaring your form insolvent and are worried about what the consequences will be, contact us, we will carefully review your situation.
This is not the rule. Insolvency proceedings may lead to the deletion of a business entity from the register and the definitive end of its activity. Nevertheless, it may be the case that the efficient and proactive action of the trustee leads to the satisfaction of all creditors and allows the company to recover. Furthermore, in the case of bankruptcy by arrangement, it is possible to continue to operate the business without having to close it down.
If you are keen to preserve your business despite being declared bankrupt, our advisers will analyse your situation and suggest what action you can take.
In principle, yes. The main objective of bankruptcy is to satisfy creditors' claims to the greatest extent possible, and this is generally done by selling the debtor's assets. Either the entire business or its individual components are subject to disposal by the trustee. Depending on the form in which you run your business, this will affect whether your personal assets or even those of your spouse will also be disposed of in the bankruptcy proceedings. The chance to preserve your business is to have your creditors paid in full through your business or through an arrangement with your creditors.
Don't delay, find out if your personal assets are safe and the property actions you have recently made will be effective against the bankruptcy estate. We can verify this for you - let nothing surprise you during bankruptcy.
It is a good idea to seek the assistance of a restructuring adviser when filing an entrepreneur's bankruptcy petition, as the petition must be filed through the National Debt Register, which restructuring advisers navigate efficiently, unlike those unfamiliar with this system. In addition, the application requires a number of details that may be unclear to those who are not practitioners of bankruptcy and restructuring law.
Benefit from our knowledge and many years of experience. Thanks to the fact that we also perform the functions of receiver, interim court supervisor, administrator, forced administrator, supervisor for the execution of the arrangement, we are sensitive to all the nuances that are relevant in the pre-filing and also during bankruptcy.
In general, insolvency proceedings can be divided into 3 main stages: bankruptcy proceedings, insolvency proceedings and post-bankruptcy actions. The insolvency proceedings comprise all actions aimed at the court's decision to declare the entity bankrupt and are initiated by the filing of a bankruptcy petition. The actual bankruptcy proceedings, on the other hand, are a collection of all actions aimed at:
- determination of the list of claims,
- the determination and liquidation of the assets of the insolvent company,
- the implementation of the plan for the distribution of the funds obtained from the sale of the company's assets.
The activities to be carried out after insolvency proceedings are completed include, for example, the deletion of activities from the relevant registers, in the case of individuals, the cancellation of liabilities without establishing a plan for the repayment of creditors or the establishment of a plan for the repayment of creditors - and its subsequent implementation.
At each stage of the insolvency proceedings, we will assist you, not only with advice and clarification of any complexities, but also with the drafting of the necessary documents and representation before the insolvency authorities.
In order to avoid disappointment in the form of financial losses, it is worth checking your counterparty - whether its company is bankrupt. Information on the company's status can be checked in the Monitor Sądowy i Gospodarczy by its NIP or KRS number, and in the case of proceedings initiated from 01.12.2021, this information is presented in the National Debt Register. Information on bankruptcy or restructuring of registered companies is updated daily.
You have found out that your counterparty has declared bankruptcy, but you don't know what you can do next about it, use our help to pursue your claims in the course of bankruptcy proceedings.
The fixed court fee for filing a petition for commercial bankruptcy is PLN 1,000. In addition, the applicant shall pay an advance on expenses in the course of the proceedings for declaring bankruptcy in the amount of one times the average monthly remuneration in the enterprise sector without payments of rewards from profit in the third quarter of the previous year, announced by the President of the Central Statistical Office, and shall present proof of its payment with the application.
Find out how to pay the fees and whether these are the only costs you should expect to pay when filing for business bankruptcy, as well as the consequences of not filing them, during a free consultation with our specialist
We are a law firm whose the overriding aim is to help in difficult situations crisis for companies as well as for private individuals. We have been handling insolvency and restructuring proceedings for many years.
We have at your disposal licensed restructuring advisors, who in cooperation with experts communication, finance and law will guide you through the insolvency process.
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+48 22-30-05-105
+48 22-30-05-106 (fax)
Write:
kancelaria@pmr-restrukturyzacje.pl
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00-838 Warsaw
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