Preventing bankruptcy by taking timely action
It is an occupational hazard, but no less annoying for that. When a company’s chances of survival are diminishing, bankruptcy often seems inevitable. In many cases, a company in financial difficulty does not intervene until it is too late, with all the drastic consequences that this entails. An impending bankruptcy may be averted by acting in time. It is very important to take the right steps at an early stage. A bankruptcy lawyer from Fruytier Lawyers in Business can support entrepreneurs in preventing bankruptcy.
Company in financial difficulty
A bankruptcy has major consequences. In the first place for the company itself, but employees and creditors are affected as well. Employees lose their jobs and outstanding debts are not paid, as a result of which the economic damage is greater than just having the organization close its doors. Preventing bankruptcy is a solution with perspective for many parties. Several options are available for this, such as restructuring, refinancing, making a restart with a pre-pack, selling the business or agreeing on a payment arrangement with creditors.
Preventing bankruptcy through restructuring
Preventing bankruptcy through restructuring starts with a critical analysis of the organization. A restructuring specialist makes a detailed assessment of the structure of the company and identifies pinch points, as well as possible solutions. Examples of restructuring a company are incorporating a new company, downsizing activities, splitting up the company into viable and non-viable units and reorganizing the workforce. The lawyers of Fruytier Lawyers in Business have extensive experience in supervising restructuring and offer careful guidance in finding the best legal form in the event of an impending bankruptcy.
Suspension of payment and composition with creditors
Companies that are temporarily unable to pay debts or outstanding bills can apply for suspension of payment. A deferment of payment is applied for at the court and, if granted, is valid for a maximum period of eighteen months. To qualify for a deferment of payment, a lawyer draws up a petition. During the suspension of payment, an organization can prevent bankruptcy in a number of ways. For example, by agreeing on a composition with creditors or by solving temporary financial problems within the specified period.
Preventing imminent bankruptcy?
A bankruptcy lawyer can prevent imminent bankruptcy and offer support in limiting the (financial) consequences. This ranges from reaching an arrangement with creditors, a major reorganization or organizing a restart to attract (external) financiers and investors. If things go wrong with your company and the business is experiencing financial difficulties, the lawyers of Fruytier Lawyers in Business are here for you and your company. Our specialists in bankruptcy law will be happy to provide you with specific advice and offer full guidance in preventing bankruptcy.