Company bankruptcy liquidation process
In the case of companies, the option of bankruptcy liquidation is aimed to the termination of the company (”muerte registral” or termination at the registry) for those cases in which there is no possibility of an orderly liquidation (compilation of an asset inventory for debt settlement), since it is precisely the existence of an asset imbalance which makes it impossible to settle all debts, and there isn’t the chance either of restructuring for its survival.
At Think it Legal we analyze the behavior of the management body and the obligations they have fulfilled during the company management, all this from the perspective of the potential liabilities —both criminal and civil— they may have incurred in and that may affect the assets directly. Mistakes as ordinary as the late filing for insolvency proceedings might involve the worsening of said insolvency and, thus, the penalty of the amount which aggravated the insolvency over the management body’s equity. Another example of liability that is quite common is the derivation of public debt liability, whether tax- or Social Security-related, due to the failure to comply with the obligation of bankruptcy filing when it has been foreseen that said debt will not be settled.