What the service includes
Corporate bankruptcy is a complex, multi-stage procedure in which the interests of the debtor and the creditors are directly opposed. The strategy depends on which side you are on: for the debtor, what matters is protecting its managers from subsidiary liability; for the creditor, getting onto the register in practice and challenging assets that were moved out.
We handle bankruptcy cases for either side: from analysing whether the procedure is worthwhile and choosing its form to protecting controlling persons from subsidiary liability, or challenging the debtor’s questionable transactions in the creditor’s interests.
We work on both sides of bankruptcy proceedings, so we understand the opponent’s logic and typical mistakes well. This lets us build a strategy that anticipates rather than reacts after the fact. We also work through the situation where the debtor is part of a group of companies: it is important to assess in good time the risk of liability extending to affiliated entities and of assets being moved within the group.
What the service includes:
Who it is for
The situations clients most often bring to us on this topic.
How we work
A fixed fee and a clear plan of action, agreed before work begins. The timeframes below are indicative and depend on the complexity of the case.
Assessing your situation
We establish which side the client is on, debtor or creditor, and which strategy fits that role. Timeframe: 3-7 days.
Choosing the procedure
For the debtor, we assess whether the procedure is worthwhile and whether a settlement agreement is possible; for the creditor, we prepare the entry of the claim on the register of creditors’ claims. Timeframe: 1-2 weeks.
Conduct of the procedure
We support the client at creditors’ meetings and court hearings at every stage of the bankruptcy. Timeframe: 1-3 years.
Securing the result
We see the case through to protection from subsidiary liability, the return of assets to the bankruptcy estate or the fullest possible satisfaction of the creditor’s claim. Timeframe: on completion of the procedure.
What you will need at the start
We confirm the exact list for your situation at the consultation. This is a guide so that you arrive at the first meeting prepared.
Key figures
Experience in this practice area specifically, not in practice as a whole.
Common mistakes
Waiting for the creditors to file. The company’s director delays seeking legal advice and lets the creditors start the procedure first, which means losing the chance to influence the choice of insolvency manager and increasing the risk of personal liability.
Hasty asset stripping before bankruptcy. The director tries to transfer valuable property quickly to affiliated persons, hoping to hide it from creditors. Such transactions are easily traced and become grounds for holding the director subsidiarily liable.
Continuing to trade despite clear signs of insolvency. The company keeps taking on new obligations and signing contracts when it already meets the criteria for bankruptcy. Once the procedure begins, this sharply raises the risk of personal liability for management for actions in that period.
What you get
A ruling entering the claim on the register. The creditor receives a judicial act confirming its claim and its place in the order of satisfaction.
A controlled conclusion of the procedure for the debtor. The company goes through bankruptcy under the chosen scenario, from a settlement agreement to bankruptcy proceedings, without sudden losses for its management.
An opinion on the risks of subsidiary liability. Managers gain a clear understanding of which decisions and transactions could be treated as grounds for personal liability.
Assets returned or a confirmed claim. Depending on your side in the case: either challenged transactions that return property to the bankruptcy estate, or a confirmed creditor’s claim.
Frequently asked questions
Can a company initiate its own bankruptcy?+
Yes, and in some cases the director is legally obliged to do so when there are signs of insolvency. A late filing increases the risk of subsidiary liability.
What risks does a director face if the company goes bankrupt?+
The main risk is subsidiary liability for the company’s debts, if it is proved that the director’s actions led to the bankruptcy or caused loss to creditors.
Can a company’s bankruptcy be stopped?+
In some cases, yes: through debt restructuring or a settlement agreement with creditors, if this is in the interests of all parties.
How long does corporate bankruptcy take?+
From a year to several years, depending on the size of the company, the number of creditors and whether there are transactions to be challenged.
Can a company keep operating during bankruptcy proceedings?+
During the observation and external management stages the business usually continues to operate, but key transactions require the approval of the insolvency manager and are subject to additional scrutiny.
How does a company’s bankruptcy affect its partners and counterparties?+
Counterparties are entitled to file their claims in the register of creditors, and the fact of bankruptcy is often used by partners and competitors in negotiations, so it is important to plan your legal position and communications in advance.