Arrangement proceedings enable the debtor to reach an agreement with creditors, which states terms of payment of the debts. Due to such a solution, the company can operate while the debt is paid from current incomes. In order to carry out arrangement proceedings, the entrepreneur is to file an application in which all obligations and creditors are listed.
In case of bankruptcy liquidation, both debtor’s enterprise and their property are sold. Bankruptcy estate is gained in this way, which, after the expense of insolvency proceedings is paid, is divided among creditors. Bankruptcy liquidation is proceeded when debtor’s operations are not satisfactory or conditions of arrangement are not fulfilled.
The choice of the insolvency proceedings is not easy and requires thorough analysis to debtor’s financial condition. The vital factor is the height of the bankruptcy estate. The workers of our Firm are experienced in the field of insolvency law. Due to our knowledge, we analyse the condition of debtors and creditors carefully and, on such basis we state which type of proceedings is appropriate in a particular case. We support our clients on each stage of proceedings.