Liquidity problems do not always mean the business must close. However, if an entrepreneur has permanently lost the ability to pay their obligations, it may be necessary to consider a petition for bankruptcy.

In such situations, timing is particularly important. Filing the petition too late can lead to additional consequences, especially for management board members.

Our firm helps entrepreneurs and companies in matters concerning corporate insolvency, from analysing the financial and legal situation, through preparing the petition, to representation in the proceedings.

How we can help

Our work includes, among other things:

• analysing the grounds for insolvency,

• establishing when the obligation to file the petition arose,

• preparing the bankruptcy petition,

• compiling the documentation,

• representation in court,

• support for management board members,

• analysing liability for failure to file the petition on time,

• representing creditors in bankruptcy proceedings.

When is a company insolvent?

An entrepreneur is insolvent when they have lost the ability to pay their due monetary obligations.

However, not every payment delay means insolvency. What matters is the company’s actual financial situation, the scale of the debt and how long the entrepreneur has not been paying its obligations.

That is why, before filing the petition, we analyse whether the grounds for bankruptcy have actually been met.

When should the petition be filed?

As a rule, a bankruptcy petition should be filed within 30 days of the grounds for declaring bankruptcy arising.

In the case of companies, this obligation may apply to management board members or other persons authorised to manage the company’s affairs and represent it.

For this reason, in the case of persistent problems with paying obligations, it is worth assessing the company’s situation as quickly as possible.

Liability of management board members

Failure to file a bankruptcy petition on time may result in liability for management board members.

We help establish when the insolvency arose, whether the deadline for filing the petition has been met and what steps the management board should take.

In such cases, it is often important to analyse not only the company’s current situation but also its financial condition in previous months.

What happens after bankruptcy is declared?

After bankruptcy is declared, the entrepreneur’s assets form the bankruptcy estate, which is used to satisfy the creditors.

Management of the assets covered by the proceedings is taken over by the trustee, who establishes their composition, analyses the documentation and takes steps to satisfy the creditors.

Depending on the situation, it is also possible to sell the business or an organised part of it.

Bankruptcy and restructuring

Bankruptcy and restructuring are two different proceedings.

Restructuring is above all intended to allow the entrepreneur to avoid bankruptcy, reach an agreement with creditors and continue operating.

Bankruptcy, on the other hand, concerns an entrepreneur who is insolvent and whose situation requires proceedings to satisfy the creditors.

That is why, before making a decision, it is worth establishing whether the company still has a realistic chance of continuing to operate or whether bankruptcy is the right solution.

Corporate insolvency and consumer bankruptcy

The bankruptcy of an entrepreneur should be distinguished from consumer bankruptcy.

Corporate insolvency concerns entrepreneurs and companies. Consumer bankruptcy, on the other hand, is intended primarily for individuals who do not run a business.

A special situation may concern a former sole trader. After closing the business, in certain cases they may use consumer bankruptcy also in respect of debts related to the previous business.

Legal assistance in corporate insolvency

Every case of insolvency requires individual analysis.

We examine the structure of the debt, the company’s assets and the obligations of the people managing the company. If bankruptcy is the right solution, we prepare the petition and represent the client at the successive stages of the proceedings.

Our aim is to put the entrepreneur’s legal situation in order as early as possible and limit the additional risks associated with insolvency.