[Wonju Corporate Bankruptcy Declaration Case] Client Who Decided on Corporate Bankruptcy, Assisted Toward a Prompt Decision to Close the Bankruptcy

A Wonju corporate bankruptcy specialist explains the corporate bankruptcy system.

The corporate bankruptcy system provided for in the insolvency law applies where a company is in a state of economic collapse, being unable to make payments or in a state of excess debt. Under the supervision of the court, it prohibits the exercise of claims by individual creditors against the debtor's total assets,

and it is a system that compulsorily manages and liquidates those assets to make fair distribution and repayment to all creditors.

The difference from corporate rehabilitation is that the purpose is not to continue operating the company but rather to wind up the company entirely, distributing the liquidated funds and closing it out.

The client who came for a Wonju corporate bankruptcy consultation operated a company that supplied automobile parts overseas.

After the COVID-19 situation, the company faced great difficulty moving goods in and out of overseas markets, and as a result, the company's sales began to drop sharply.

At first, thinking that COVID-19 would pass quickly, the client reduced staff and took out loans in an effort to keep operating the company, but with the continued economic downturn and the prolonged COVID-19 situation, the client ultimately decided to close the business.

The client spent personal funds to pay the wages of the remaining employees, but the client was unable to pay severance pay, and the debts that had been borrowed to maintain the company during operations became difficult to settle.

The client's company was in a state of excess debt and unable to make payments, so grounds for bankruptcy existed, leading to the corporate bankruptcy application. For this reason, in order to follow the corporate bankruptcy application procedure with the help of a corporate bankruptcy specialist attorney,

the client visited Daeryun's Rehabilitation and Bankruptcy Group.

The Wonju insolvency attorney submitted the client's company's sales and profit-and-loss statements for the past three years as materials to substantiate the sharp drop in sales.

The attorney also argued that the client's company could no longer generate sales, had received no recent orders, and that continued business operation was meaningless due to the prolonged COVID-19 situation.

The attorney further argued that, because all employees other than the client had been processed as resigned, business operation was effectively impossible.

The Wonju insolvency attorney argued that the client's company was in a state of excess debt.

The attorney submitted the total debts, the details of the liabilities, and a certificate of debt to the court, proving that there were debts totaling about 100 million won, and emphasized that the requirements for the corporate bankruptcy application were met.

The Wonju insolvency attorney explained why the client's company's assets exceeded its liabilities on the financial statements.

The client's company recorded assets of about 500 million won on its financial statements, but it had almost no actual assets.

The corporate bankruptcy attorney submitted to the court a supplementary statement explaining the reason for the difference between the final statement of financial position and the actual assets, citing the liquidation value presented by the debtor.

After reviewing the supplementary statement, the court accepted it and soon issued the corporate bankruptcy decision.

When carrying out the Wonju corporate bankruptcy procedure, there are a great many documents to prepare and much information to look into, such as the scale and appropriateness of the required advance deposit, so the advice of a specialist is necessary.

An attorney holding a certified tax accountant qualification, a certified public accountant, and an insolvency specialist attorney form one team to handle the case, so you may visit the Rehabilitation and Bankruptcy Center of Daeryun Law Firm for a corporate bankruptcy consultation.

Before carrying out the Wonju corporate bankruptcy procedure, the client believed that maintaining the company was best and worked to keep the company by increasing its debts, but the client realized that receiving a corporate bankruptcy consultation and proceeding with corporate bankruptcy was a good approach.

Because the number of people applying for corporate bankruptcy and corporate rehabilitation is growing over time, the courts are also conducting their reviews more strictly.

You may visit the Daeryun Rehabilitation and Bankruptcy Center, which has specialized expertise, and prepare properly for the corporate bankruptcy procedure.