There are many different ways that you can end a bankruptcy. You can pay off your debts or settle with your creditors. You should determine the result of each bankruptcy and how it would affect you.
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There are some different ways to end a bankruptcy:
- You don’t have enough possessions.
- You and your creditors had agreed.
- Insolvency is where you’ve not managed to agree with creditors.
- You may enter into legally binding debt restructuring.
- You don’t own sufficient belongings.
The curator (liquidator or trustee) can petition the court to end the bankruptcy if you have insufficient assets to pay for bankruptcy, say the fees of the curator. The debts are not all paid off. Creditors can still pursue debts in the future. Debt that is out of time will expire.
You and Your Creditors Have Agreed
If the creditors agree with the curator’s suggestion, bankruptcy is excluded. You will be able to receive payment of a portion of your debt and be discharged in full. You are to be discharged from payment of the remaining part of your debt. The agreement should be certified by the court; this is referred to as homologation.
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If bankruptcy leads to a settlement with creditors, the curator will prepare a list of creditors and a distribution list. The creditors may appeal the list within 10 days. If not, the bankruptcy has been settled and the distribution list has been agreed on.
Insolvency Is When You Have Not Reached an Agreement with Creditors
You cannot reach an agreement with your creditors. Bankruptcy will be imposed by the court. The curator will dispose of all your assets and divide the proceeds among the creditors. Your personal belongings may be sold or may not be sold, depending on how your business is structured.
Some of the creditors are senior, argue the taxman. They get paid first. The rest of the capital will be shared among the (competitive creditors) if any. You will then be adjudged bankrupt and wound up as an individual. Your assets will also be realized if you are a legal person without a legal personality (natural person).
Registration in the Insolvency Register
You will be registered in the Central Insolvency Register upon bankruptcy. The register contains all data on bankruptcies and suspensions of payment. The register is accessible online to the public.
You can engage in debt restructuring legally
You end a bankruptcy when you are enrolled in the Debt Restructuring Act for Natural Persons. The act can be applied only to natural persons who are individually liable for the debt of the company.
Only in exceptional cases do you need to close down your business in case you qualify for the WSNP. Only exceptional cases allow you to proceed with carrying out business. Your business can keep running if, for instance, it is more lucrative and non-risky.
Do You Accept or Not the Statement of Bankruptcy?
Do you agree with a reported bankruptcy? You might believe your business can still be run. You can appeal or object.
- You can protest if you do not show up for the bankruptcy hearing within 14 days.
- You can appeal in 8 days if you show up for the bankruptcy hearing.
- The bankruptcy will be canceled if the court or the court of appeal rules in your favor.
- The bankruptcy is finalized.
- You can appeal the Supreme Court judgment on the decision of the Court of Appeal if you are not satisfied with it within 8 days.
Bottom Line!
There are many ways to end a bankruptcy: paying debts, settlement with the creditors, or judicial reorganization of the debt. Without the assets to pay bankruptcy charges, the creditors can pursue future outstanding debt. Or the creditors’ settlement can be in writing off some of the debts. Without the creditors’ settlement, the court can order bankruptcy, which results in the selling of your assets.
For some, applying under the WSNP debt restructuring can be an option.
Resisting a bankruptcy order is achievable by filing an appeal within the specified time.
If you are in a state of bankruptcy and need advice on your options, consult with experienced lawyers at Bruner Wright PA to safeguard your property and capital. Reach out today to an experienced bankruptcy lawyer regarding the best solution for your case.
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