BANKRUPTCIES AND INSOLVENCY PROCEEDINGS


Information on the judicial proceedings of insolvent companies



In carrying out his activity, an entrepreneur may find himself in a particular state of economic and financial crisis that prevents him from paying his debts, and is defined a state of insolvency.

His inability to fulfil the obligations he has taken on results in his creditors being entitled to receive satisfaction for the amounts due them through a guarantee of equal treatment.



Controlled administration procedures have as their object the entire wealth of the entrepreneur and relate to all creditors. The main aim of each of them is essentially to drastically reduce the autonomy of the entrepreneur by taking away his access to assets and nominating a body to control activities.

Controlled administration procedures are implemented in the following situations:

  • state of insolvency
  • serious management irregularities
  • temporary difficulty in fulfilling obligations.



There are various types of controlled administration procedure: the main ones, all regulated by law, are:

  • bankruptcy
  • arrangement with creditors
  • administrative compulsory liquidation
  • special administration measures.
According to which phase the procedure is in, the business may have a pending or final "status" in the Business Register, for example:
Administration
Administration

Controlled, legal, special
Bankruptcy
Bankruptcy

Ordinary, criminal
Arrangement
Arrangement

Bankruptcy, voluntary
Liquidation
Liquidation

Voluntary, judicial, administrative compulsory
Winding-up
Winding-up

With or without liquidation, by order of the authorities, etc.