BANKRUPTCY OF THE ENTREPRENEUR

- safeguarding managers -

WHAT ARE THE BENEFITS OF FILING FOR BANKRUPTCY ON TIME?

AVOIDING LIABILITY FOR THE COMPANY'S OBLIGATIONS

allows a member of the management board of a limited liability company to free himself from liability for the obligations of an insolvent limited liability company.

AVOIDING LIABILITY FOR TAX ARREARS

enables a member of the management board of a limited liability company to free himself from liability for the tax arrears of an insolvent limited liability company, limited liability company in organization, simple joint-stock company, simple joint-stock company in organization, joint-stock company or joint-stock company in organization

AVOID CRIMINAL LIABILITY

will allow management board members or liquidators to avoid criminal liability for failing to file a bankruptcy petition for a commercial company

SATISFACTION OF CREDITORS

will allow creditors to be satisfied from the assets of the insolvent entity and will lead to the redemption of remaining claims

WHAT WE WILL DO FOR YOU

WE WILL CHECK THE CONDITIONS

we will analyze free of charge whether your situation is suitable for bankruptcy proceedings

WE WILL CLARIFY ANY DOUBTS

we will explain to you step by step all issues related to bankruptcy proceedings

WE WILL PREPARE THE NECESSARY DOCUMENTS

we will prepare the necessary documents and support you throughout the bankruptcy proceedings

WHO BENEFITS

Running a business can go through various stages: from market success, through stabilization of market position, to temporary or permanent incurring of losses. Often a single event, in the form of a payment jam from a key counterparty and a lack of liquidity, can cause an avalanche of adverse consequences with irreversible effects, ultimately leading to a state of insolvency for the entrepreneur.

State of insolvency

A state of insolvency arises when the ability to perform due monetary obligations has been lost, e.g. the delay in the performance of monetary obligations exceeds three months, or when the company’s monetary obligations exceed the value of its assets, and this condition persists for a period exceeding twenty-four months.

Obligation to file a bankruptcy petition with the court

Few businesspeople are aware that within 30 days of the date on which grounds for bankruptcy arise, they have not only the right, but the obligation to file a bankruptcy petition with the court. There is also a prohibition on selective satisfaction of creditors who should be satisfied after bankruptcy proceedings.

Consequences of not filing on time

Ignorance or willful disregard of this obligation to file a bankruptcy petition with the court can result in very harsh financial consequences for those who represent the entrepreneur, since for the liabilities and tax arrears of companies, the members of its management board are jointly and severally liable with all their assets.

For the above reasons, it is so important to diagnose the occurrence of the state of insolvency of the entrepreneur and effectively file a bankruptcy petition in a timely manner.

WHY WE

WE ARE A REPUTABLE LAW FIRM

we are a reputable law firm with an established position on the market

WE HAVE EXTENSIVE EXPERIENCE

we have extensive experience in handling bankruptcy proceedings

WE HAVE HELPED MANY ENTREPRENEURS

we have already helped dozens of entrepreneurs

WE ARE EXPERTS

we are perfectly prepared in terms of content

WE HAVE AN INDIVIDUAL APPROACH TO EACH CASE

from the beginning we will take care of your case individually and professionally

FAQ

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 pay 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 his creditors. Importantly, in the event of financial problems, the timely filing of a bankruptcy petition may relieve the persons representing the capital company from liability for some of the company’s debts.

In fact, the earlier the better. When the first symptoms of impending insolvency appear, the company’s financial situation should be carefully diagnosed. This is because once a state of insolvency has occurred, the entrepreneur’s bankruptcy petition should be filed within 30 days of the occurrence of this state. Submission of the application after this deadline will not exempt the representatives of the capital company from liability for the company’s debts.

The bankruptcy of an entrepreneur who is a natural person allows for the cancellation of unsatisfied liabilities from the bankruptcy estate. In the case of capital companies, a timely filed bankruptcy petition allows to avoid liability for the company’s debts. From the point of view of creditors, the bankruptcy of a company aims to fairly satisfy creditors from the remaining assets of the entrepreneur.

Bankruptcy proceedings begin with the filing of a petition. In order to prepare a complete bankruptcy petition, it is necessary to gather information and documents about the company, such as a current list of assets with their estimated valuation, a balance sheet prepared 30 days before the filing of the petition, a list of creditors, a statement of payments of claims and debts for the last 6 months, a list of entities obligated to the applicant, a list of enforcement and execution titles and others. The application must be paid with a court fee of PLN 1,000, and must be accompanied by proof of payment of an advance for expenses in the amount of one times the average monthly salary in the enterprise sector without profit rewards in the third quarter of the previous year.

The duration of bankruptcy proceedings varies greatly. The examination of the application itself should take place within 2 months from the date of filing, but in practice it takes a little longer. The actual bankruptcy proceedings, on the other hand, take from several to even dozens of months. The duration of the proceedings mainly depends on the size of the bankruptcy estate to be liquidated and the number of creditors.

It is a good idea to use a restructuring advisor to file a business bankruptcy petition. This is because the filing of the application is done through the National Debt Register, which restructuring advisors navigate efficiently, unlike those unfamiliar with the 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. However, restructuring advisors should have no problem drafting it correctly.

Meet our team

TOMASZ MADEJCZYK
LEGAL ADVISOR

Graduate of the Faculty of Law and Administration of the University of Lodz

ŁUKASZ KLIMCZAK
Attorney
Restructuring advisor

Łukasz Klimczak, attorney, graduated from the Faculty of Law and Administration at the University of Łódź.

DAWID ĆWIKLAK
Legal Counsel

Graduate of the Law Faculty of the University of Łódź.

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