I am curious about the difference between corporate rehabilitation and corporate bankruptcy.

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I understand there are multiple stages in tax appeals — pre-assessment review, objection, examination request, tax tribunal claim, Board of Audit and Inspection examination request, and administrative lawsuit. I don't fully understand the specific differences between each stage... Is there a tax attorney who can explain each stage in detail?

corporate rehabilitation

corporate bankruptcy

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You are considering corporate rehabilitation and corporate bankruptcy and are curious about the differences between them.

First, corporate rehabilitation and corporate bankruptcy are two legal procedures that companies can choose when facing financial difficulties.

Corporate bankruptcy is a liquidation procedure in which, when a company is unable to pay its debts, the court disposes of all the company's assets, distributes them to creditors, and the company is dissolved.

In contrast, corporate rehabilitation is a reconstruction procedure in which, if there is a possibility of rehabilitation for the company, debts are frozen or adjusted while continuing the business and distributing profits to creditors.

Rehabilitation may also proceed with the CEO maintaining management, but bankruptcy is managed by the bankruptcy trustee appointed by the court.

Also, while shareholders can also apply for rehabilitation, only the company and creditors can apply for bankruptcy.

If there is room to save the business, prompt rehabilitation application is important.

Since rehabilitation and bankruptcy have significantly different procedures and outcomes, careful judgment suited to the company's situation is required.

For details, please check through consultation with a specialist attorney with abundant experience in corporate rehabilitation and bankruptcy cases.