Bankruptcy of a company and suspension process

La bankruptcy of a company It has to do with internal management and the different skills in the field, for that it is necessary to know the types and effects that will be detailed in this article.

bankruptcy-of-a-company-2

The declaration of bankruptcy all assets pass into the control of the trustee

Bankruptcy of a company

The bankruptcy of a company, is a legal situation when it cannot face the responsibilities and economic obligations because these duties are greater with respect to the disposition of its available assets, that is, the firm is bankrupt, it is also known as as failed; When the bankrupt is found to be in ruins, a process of insolvency proceeds to verify if the company can assume its pending payment obligations.

The characteristics of the bankruptcy of a company they refer to a situation of insolvency in general that differentiates it from the pure suspension of payments; where it can be a permanent debt over time; is willing to be impartially valued by means of the facts that indicate bankruptcy; it is of such a size that at first sight it is observed that it is not salvageable by the bankrupt.

Within the plans and projections of a company is the right decision making so that they can influence the finances and the administrative evolution of their objectives and fulfill each of their obligations.

Dear reader, we cordially invite you to enjoy, pass and read our article on business financial plan in order to learn about the importance of decision making.

Features

The different characteristics of a bankruptcy make it a unique reality, therefore, different from others; these are the following:

irreversible situation

After a company goes bankrupt, this firm must be committed to its dissipation; Indeed, other companies will be able to emerge, but this one that has been declared bankrupt will not work again because the meaning of bankruptcy is permanent.

Actives and pasives

When referring to assets such as furniture, buildings, cash, ships and others; Although there is a large amount of assets where depreciation calculations are made, in the same way they are less than the debts that are had such as loans, mortgages, pending payments.

company integrity

When business bankruptcy situations occur, it usually affects the rest of the different organizations and corporations involved in the market; indifferently that for its activation you have to divide the company and make sales of them in order to cover some percentage of the amount owed.

Legal representation

The bankruptcy action is a protection that can be legally justified and supported, it must be demonstrated and reference to the articles that prove it because on occasions it has been used for fraud purposes; therefore it is necessary that the process be completely transparent and objective.

Dear reader, we invite you to enjoy and read our article on financial ratios and be able to learn a little more about this financial instrument.

Effects 

The consequences of a bankruptcy can be taken as a reference point before issuing the bankruptcy judgment:

  • The debtor is unable to direct his assets, said administration passes to the hands of a third institution called trustee or judicial mediator, until the opinion is made, for the proceeds to indemnify the plaintiffs.
  • The bankruptcy is registered and the removal of assets of the bankrupt from the relevant records is located.
  • Outstanding term guarantees become expired and immediately claimable.
  • The rights of the creditors are established, since their reality cannot be optimized following the declaration of bankruptcy.
  • They accumulate all the deferred judgments against the bankrupt debtor before the magistrate who is hearing the state or condition of the company.
  • Creditors lose control of specifically making the debtor bankrupt.
  • The bankrupt debtor is granted the right to ask for help from different means of creditors.

Types of business bankruptcy

Within the economy of a company, two types of bankruptcy can be differentiated, voluntary and involuntary, below are the details:

volunteer

In any establishment that is not an administrative or financial entity, you can file a bankruptcy petition in your own name; the debt is not necessary to formally mention the voluntary bankrupt, nor does the company have to have violated one of the legal acts of bankruptcy.

involuntary

Involuntary bankruptcy is initiated by a third party, most commonly by a creditor. An involuntary bankruptcy petition may be filed against a company if one of the following is true:

  • The company has overdue debts for an amount that highlights its payment capabilities and commitment to third parties.
  • Claimants who manage to prove that they have unresolved requests added against the firm.
  • The company has filed for bankruptcy within the four months prior to the initiation of the bankruptcy petition.

Fraudulent

This type of bankruptcy is very serious, it refers to when the administrator of the association, taking into account what he is doing, being activities that go against the security and sustainability of the firm, executes them with bad intention; this deception is technically known in law as a deceitful attitude.

liquidation of the company

The trustee is the entity in charge and responsible for the auction of the company, it is common that three intendants are assigned to be able to form an adjoining advisory commission of creditors, the high magistracy calls continuous meetings of lenders and in order to consummate with the assets it will be pretended at the last appointed meeting.

One of the trustee's priorities is to liquidate all the assets of the company and thus be able to exchange the product among the beneficiaries of the claims made, which have been presented before the courts, which will give the order of priorities for cancellation.

The management expenses of the estate in bankruptcy, referring to the salaries that the employees have achieved in the period of three months and have not been canceled by the bankruptcy process. As a second term to take into account, the taxes that correspond to the bankrupt company and is in default with any government entity.

In the same way, any existing debt in any public service including the rental service. The claims of guaranteed clients who take the liquid product of the sale of the assets, in the case of being insufficient to compensate the certified demands, the pending creditors will become clients without canceling.

Next, as a third term to take into account, the demands of general and subordinate clients, when they are not guaranteed or general, the unrepaired requests of guaranteed clients; the claims of subordinate clients have the same treatment as in general, these clients must pay the required amount to the priority clients.

Outstanding associates who adopt a sum equal to the par value or fixed value of the preferred shares; the common shareholders who take other capital remnants, which are marketed on an equality per share basis. In the case of having categorized the capital of common managements, there may be priorities.

Suspension of payments process

Process of suspension of payments can be defined as the situation of an employment relationship, caused by the will of the parties or by law, determined by the temporary dismissal of the primary obligations to work and pay for work, with continuity of the legal bond.

In the essential requirements of the suspension is the eventuality of the existing situation, not providing work service during the process, non-gratification, process and continuity of the agreement that due to the influx of a suspensive reason suffers only a kind of lethargy.

The international civil code declares in the article in its article 925 that, "every merchant who is in a state of bankruptcy must make a written declaration of it before the Commercial Judge of his commercial domicile, within three days following the default".

This statement the debtor will attach the following documents, in accordance with article 926 of the civil code, the Balance Sheet or a statement of the reasons that prevent the bankrupt present it; a mention deducted from the causes of bankruptcy. Both the document, the balance and the memory must be headed and signed by the applicant under the oath that they are true in accordance with article 927.

The balance must dominate the relationship and values ​​of all assets, personal and immovable, and evident changes due to the due absence of all debits and credits, expenses and profits and losses. These profit and loss expense statements will contain the ten years prior to bankruptcy.

Conclusion

In the event that a company or association has the need to delay its payments, and consecutively extend them due to different economic inconveniences; to settle your debts and not be legally penalized; You can settle your business amicably by going to commercial court.

Otherwise, that it does not assume its obligations or responsibilities voluntarily, the Mexican Commercial Code protects the rights of the injured plaintiffs who are able to unite to request the bankruptcy of the company, through an action of declaration of bankruptcy before the corresponding court.


Be the first to comment

Leave a Comment

Your email address will not be published. Required fields are marked with *

*

*

  1. Responsible for the data: Actualidad Blog
  2. Purpose of the data: Control SPAM, comment management.
  3. Legitimation: Your consent
  4. Communication of the data: The data will not be communicated to third parties except by legal obligation.
  5. Data storage: Database hosted by Occentus Networks (EU)
  6. Rights: At any time you can limit, recover and delete your information.