How to submit a bankruptcy

There are few companies that throughout the economic crisis have been declaring that they are in bankruptcy proceedings, since they cannot cope with the debts they have. Although we all hope not to have to present such a situation, it is never wrong to know what the process for submitting a creditors” contest is, so we explain it to you.

Steps to follow:

1.The request for bankruptcy must be submitted in the Commercial Court of the Province where the registered office of the company is located.

2.The application must be signed by a lawyer and a solicitor, as it must be represented and assisted in the process by them, proving insolvency status.

3.Other documents to be attached with the application are:

• Report on the past and present economic activity of the debtor, which influence their current insolvency situation.
• Inventory of goods and rights.
• Relationship with creditors and debt to them.
• Annual accounts for the last three years (if I kept accounting) as well as important capital changes.
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• In the event that the application has been submitted by any of the creditors of the company, the latter will be conveniently informed to justify allegations in this regard.
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• It is important not to forget that the contest of creditors must be requested, at most two months later after the moment in which they stopped paying or they realized that they will not be able to face future payments.