The failure for a company represents the culmination of his crisis is not curable, irreversible and in practice postponed. In fact, when a company is unable to pay its debts, is first of all declared a state of insolvency. And in severe cases is then declared bankruptcy, by a court through a judgment. In this guide we look at just the business failure .

Bankruptcy proceedings may be activated by the same company in crisis, rather than from its creditors, or it can act independently the same court. Once the bankruptcy is also appointed a receiver, who has the task of administering what remains of the company’s assets. The main task of the receiver is to seek the company failed to repay their debts to creditors. In practice, the first curator prepares a list of the actual creditors and then preparing to make their formal and official contact, one by one.

Then make the liquidation of all the company’s activities, through a series of sales of movable and immovable property of any claims or recoveries, to obtain materially the money returned to creditors. However comes a time when there are no more active to be settled, at this point the failure is declared concluded.

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It ‘s definitely worth noting that a business failure, said previously closed can be reopened in cases in which a creditor can prove that there are other active assets of the company failed, the potential sale could generate new cash flows to be distributed to eligible. Even the reopening of a failure still requires a judgment of the court judgment after ascertaining the actual reality of what is claimed by the applicants reopening same. This judgment is a formal acknowledgment, and then executive of the new state of affairs.

A failure can also be stopped early after the approval of the so-called agreed by the bankruptcy court. This type of arrangement is in fact an agreement between the company and its creditors failed. The approval coincides with the actual approval by the bankruptcy court of the arrangement just described.