When a company is going through difficult financial times, the idea of declaring bankruptcy generally go through the minds of their owners. What is bankruptcy? What are their characteristics? What effects might have on the company and its creditors? Is it appropriate in all cases? Although there will certainly be other issues involved, try to shed light on these basic questions. Definition To describe in simple terms bankruptcy is a legal process, a situation in which a company, institution or individual can no longer cope with the debts contracted or canceling payments go ahead, called payments required. These payments are payable in an amount greater than its assets, ie, greater than what the company has to pay problems. A debtor of such legally call fails, it can declare its bankruptcy court and then proceed to a tender procedure also called Bankruptcy. Students will be analyzed situation failed to verify that bankruptcy is real, not simulated, and in what state are your assets to determine whether it can take over some of the outstanding debts to its heritage, and which ones.
Features A bankruptcy is one that has only the failed economic or financial problems. By contrast, in a situation of bankruptcy or bankruptcy, the debtor's insolvency is widespread, permanent and not just a cessation of payments. This bankruptcy is a situation of such a scope that is insurmountable for the bankrupt and insolvency becomes obvious way to be objectively perceived by their cues from bankruptcy. Its effects When a declaration of bankruptcy, the debtor is inhibited by the administration of their property and this administration goes to the syndic. This, then evaluates what are the debts that are overdue, as they are due, and then fixing the rights of creditors so that they can only claim what is owed until the declaration of bankruptcy. We will not result in anything that they claim after the debts or contract dated after this declaration and lose the right to prosecute to enforce individual property of the bankrupt. The prosecution evidence accumulates, especially all the lawsuits pending against the bankrupt, to the judge that hears the case. In some bankruptcy cases and in some countries, the debtor failed to retain the right to ask for food to all creditors. Although regulations differ from the bankruptcy from country to country, the characteristics tend to be in force in all parts of the world and added to those that could deliver these local authorities.