Sometimes, the situation is unsustainable and it is necessary to declare bankruptcy . This is a legal procedure in which the debtor finds himself insolvent and is asked to pay off his debts (to the extent of his possibilities). Thus, the whatsapp australia contact number number of creditors, the amount of the debts and, above all, the type of debt are taken into account.
If you find yourself in a situation of insolvency or bankruptcy, this procedure works as a mechanism for orderly satisfaction of debts and also provides social protection and gives the debtor a second chance.
This process is regulated by Law 22/2003, of July 9 , on Bankruptcy, better known as the "bankruptcy law." The main objective of this law is to try to avoid the total dissolution of the company and to promote the preservation of assets.
As we have already indicated, bankruptcy is a judicial procedure and works as a debt settlement mechanism. It applies to both individuals and legal entities, that is, both companies and self-employed workers. And the size of the company does not matter, anyone can apply for it.
In any case, it is always advisable to hire lawyers for bankruptcy proceedings so that they can advise you at all times and protect both your rights and interests. Whether you are a debtor or a creditor, it is best to be advised by professionals in the field.
This procedure guarantees:
The satisfaction of debts and that creditors collect on equal terms.
It is aimed at continuing economic activity , to the extent possible.
The collection of certain credits takes precedence, that is, if a company has debts with workers or the Public Administration, they have priority over other creditors.
When this process begins, the first thing to do is to draw up a restructuring plan to try to prevent the company from closing; to propose a partial payment solution always based on the principle of equality and if the situation is unsustainable, to propose the liquidation of the debtor's assets so that he can meet the payment of the debts.
How to apply
The bankruptcy petition must be filed when it is impossible for the debtor to continue meeting his credit obligations . That is, when due to the economic situation, bankruptcy is likely and is being attempted to be avoided.