The term “bankruptcy” refers to the state of a French company that can no longer pay its debts.
The concept of the bankruptcy of a company is related to the concepts of assets and liabilities. The Billion Raskolnikov billing software allows you to record your fees and purchases, which are part of your company’s assets.
Several notions are included in this state of “bankruptcy”: cessation of payments, bankruptcy, liquidation, bankruptcy, filing for bankruptcy, over-indebtedness etc. Explanations
How to file for bankruptcy chapter?
There are several synonyms or words close to “bankruptcy”, here are some of them:
Bankruptcy: Bankruptcy is a criminal offense, which can be punishable by law. We talk about bankruptcy when, for example, the head of the company has amused money belonging to the company, or else have not kept a faithful and complete accounting. The judgment of bankruptcy is generally noted during the proceedings of judicial recovery.
Insolvency: We speak of an insolvent company when it can no longer pay its debts. This state may result in bankruptcy.
Filing for bankruptcy: The bankruptcy filing is the old term used for what is now called the “declaration of cessation of payments”. i was reading this for more information about how to file for bankruptcy.
Personal bankruptcy: This is a decision made by the court against a corporate executive who, for example, has been guilty of serious misconduct.
Characteristics of bankruptcy
A company is said to be bankrupt when its liabilities are greater than its assets, in other words when the available assets are not sufficient to cover the liability. She is no longer able to pay her debts.
The term “bankrupt” still exists in the current language, but the exact term is today “cessation of payments”.
It is up to the commercial court to declare the company bankrupt. This observation can arise in several situations. For example, when the company manager files for bankruptcy and declares that the company is insolvent.
What to do in case of bankruptcy
Company executives have a period of 45 days between the moment when the state of cessation of payment is noted, and its declaration to the commercial court.
This declaration must be made either at the clerk’s office of the commercial court or at the clerk’s office of the high court, depending on whether one is a typical commercial enterprise SARL or a typical organization association.
This declaration precedes either:
Judicial redress proceedings:
In this case, the assets of the company are examined. The liabilities and assets of the company are also measured. The objective is to correct the situation of the company.
As a result of this period, the company can be declared viable, and see its debts spread. In the case where the company is not viable, it can either be taken over by a buyer or not taken back because no buyer is interested, and then go into liquidation.
The liquidation procedure:
In case of liquidation, the property of the company is sold, and one seeks to pay the debts of the company. The objective is to close the business of the company, by settling its debts.
This procedure can take a long time, and last for several months or years.
The company which is in the liquidation procedure will have to produce a declaration of the result within 60 days from the closing date of the liquidation and transmit it to the tax authorities.