Dear Clients and Friends,
As we mentioned in a previous alert, the Law of Commercial Bankruptcy indicates the cases in which there is presumed to be a generalized breach of obligations by a merchant, which may lead to the initiation of a Commercial Insolvency proceeding, either by said merchant, by a creditor, by the Public Ministry and even by a Judge, if during a trial the merchant meets any of the requirements established in the aforementioned law.
Such requirements are the following:
A).- Non-existence or insufficiency of assets to execute a seizure.
B).- Failure of payment obligations to two or more different creditors.
C).- Concealment or absence or closure of the facilities, without leaving someone in charge of the administration or operation of the company who can fulfill its obligations.
D).- To practice ruinous, fraudulent or fictitious practices to attend or stop fulfilling their obligations.
E).- Failure to comply with pecuniary obligations contained in an agreement executed with creditors.
F).- In any other case of a similar nature.
Therefore, whoever files the Bankruptcy will have to prove the existence of any of these requirements for the presumption of generalized breach of obligations to operate.
Before the declaration of bankruptcy, a verification visit will be ordered, which shall be carried out by a registered specialist designated by the Federal Institute of Specialists of Commercial Bankruptcy who, based on the accounting and financial information of the merchant, will determine if the latter falls under a generalized breach of obligations.
Let us not forget that the Commercial Bankruptcy applies for both individuals and business entities. It seeks a reorganization of the company that allows the valuation of all its assets to be able to face its debts in an efficient and orderly way, so that through its declaration, the suspension of payments and the executions against it are accomplished, as well as the preservation of the company, in addition to avoiding generalized non-compliance with payment obligations, protecting employment and recovering the financial solvency of the debtor.
If you have any doubts about the above, we offer you our services in order to analyze this topic, which is of great importance at this period of crisis in which we find ourselves and for you to be well informed about this process.