How can I arrange bankruptcy?
When there is no longer any way out of a company's financial problems, bankruptcy is unfortunately inevitable. This is not about one-off or temporary defaults: in bankruptcy, you can no longer pay the bills structurally and there is no realistic prospect of improvement.
The bankruptcy procedure applies to all companies. That term includes both legal entities and natural persons who independently carry out a professional activity. So that includes, for example, practitioners of a liberal profession, farmers ...
Within a month after you stop paying as a company, your company is obliged to declare it. A natural person makes the declaration himself (or with power of attorney). For a company, the administrative body will act. The declaration is done electronically via the Central Register Solvency. If an electronic declaration is not possible, it will exceptionally still be filed "on paper" at the registry of the corporate court. As a company, you then have to add certain documents to your declaration to prove your bankruptcy. The declaration and the data to prove the declaration must also be communicated to the works council, the committee for prevention and protection at work, the union delegation or a workers' delegation.
A company can also be summoned in bankruptcy by one or more creditors, by the public prosecutor or by the provisional administrator. Proceedings following a summons are also recorded in the Central Register of Solvency. In that case, the bankrupt still needs to create an account on this website.
The company court pronounces the bankruptcy and appoints a receiver and supervisory judge. The bankrupt's creditors are invited to file their returns of claim. The trustee, under the supervision of the supervisory judge, will then sell the company's remaining assets, after which the proceeds will be distributed to the creditors. The court then closes the bankruptcy.
The bankrupt natural person can also apply for a waiver, meaning that it will be released from residual debts vis-à-vis creditors. Or the bankrupt can obtain rehabilitation once it has paid all the amounts, principal, interest and costs in full.