How to File Bankruptcy? Check out how! – Many have asked about this theme. Bankruptcy itself can be caused in general due to the inability of the borrower to repay the loan and interest on the loan. In formal language, bankruptcy according to maryland bankruptcy attorney is the process of a debtor who has financial difficulties to pay his debts and then is declared bankrupt by the court. Here, the court is a commercial court.
So, the debtor (borrower) cannot repay his debt. Therefore, the debtor’s assets will be distributed to the creditors (who lend) based on the decision or the rules of the applicable law. With easier language, the word bankrupt or also called bankruptcy here is aimed at people who borrowed some money and then couldn’t return it.
Well, the borrower’s property will be used as collateral and will be distributed to those who lend in accordance with what was decided by the court.
Procedure for Filing Bankruptcy
Of course, to be able to file for bankruptcy, creditors must file for bankruptcy in accordance with applicable procedures or rules in accordance with the law. So, from here can be seen several aspects in advance such as who has the right to file for bankruptcy, what are the conditions and how are the steps for filing for bankruptcy. The following is a brief explanation;
The party entitled to file for bankruptcy;
- Based on the debtor’s request (without coercion)
- Based on requests from 1 or more creditors (can be forced or not)
- Prosecutors’ Office in the name of public interest
- Central Bank, in the case of debtors, has been determined to be a bank institution
- Capital Market Supervisory Agency which in the case of debtors, has been determined as a securities company
Whereas the legal requirements for filing for bankruptcy are as follows;
- There is debt, at least one debt has matured and can be billed
- There is a debtor
- There are creditors (can be more than one)
- There is a request for bankruptcy statements, and
- Bankruptcy statement by the Commercial Court
Next, what need to be considered is the steps for processing the bankruptcy filing.
Steps for processing bankruptcy filings
There is a request for bankruptcy, while the conditions of the request for bankruptcy have been set according to Law No.4 of 1998. As for the decision on bankruptcy, it has a permanent power and cannot be contested, while the period for requesting bankruptcy until the bankruptcy decision is handed down has a permanent power and that time for 90 days.
There is a verification meeting. This meeting is a registration meeting of accounts payable and receivable. At this stage, data will be collected on the nominal amount of debt and receivables, in this case owned by the debtor. This verification is a very important stages even the most important in the bankruptcy filing process. This is because there will be a sequence of consideration of rights for each creditor.
If there is a peace process and peace is accepted, then the bankruptcy process cannot automatically be continued or ended. However, if there is no peace process at this stage, the bankruptcy filing case will proceed to the next step. However, this peace process is always sought and scheduled.
There is homologation getting along. This step or stage is in the form of a ratification request made by the commercial court and applies if the peace process can then be accepted.
There is insolvency. This relates to a situation where finally the debtor is officially declared completely unable to pay off his debts. Or in other words, the debtor has a smaller amount of assets than the amount of debt.
There was an order or liquidation. At this stage, the assets of bankrupt debtors will be sold and then distributed to concurrent creditors. Of course, after the property is reduced by various costs. This stage is an attempt to recover the creditor’s name. However, this happened when the peace process was accepted. If there is no peace process, then there is no rehabilitation.
Deal with Bankruptcy
It requires a long and long process to deal with bankruptcy. However, if not taken care of, the debtor who owes interest on loans or other loans that cannot be repaid can feel more flexible. It’s best to think about and resolve the process as a family if you can. However, it is usually the debtor or the person who borrows this that has been proven wrong to be reluctant to admit.
Why do companies need to hook up lawyers’ offices and legal consultants?
Advocates are people who work in providing legal services. In the advocate community it is a Lawyer or Legal Consultant. The duty of a lawyer / advocate, in principle supported interests of clients related to regulations.
This service served by lawyers providing consultation of law, litigation and legal aspect, representing, assisting, defending, and carrying out of the legal interests of clients.
Why you should need a lawyer and legal consultant?
Bankruptcy also has a meaning as a process in which a debtor who has financial difficulties to pay his debt is declared by the court. The court that has the right to sue here is a commercial court because the debtor cannot pay his debt.
Nothing escapes the law, including process of business transaction doing by companies and individuals. Some of the like cooperation agreements (contracts) with business partners, company foundations, licensing, brands, patents, copyrights, mergers, acquisitions, work agreements with employees, and so on. It is all regulated by law.
You can prepare for your company to handle lawsuits or lawsuits from third parties (such as the public, employees, business partners or even the government).
And if a problem has occurred, it gives impact to the company’s business communities, the lower trust of reputation and brand, as well as other matters that will result in the company’s economic loss.