CONTENTS
- 1. The Client Who Sought a Corporate Bankruptcy Attorney
- - The Client Who Requested Assistance With Corporate Bankruptcy Proceedings
- 2. Bankruptcy Explained by a Corporate Bankruptcy Attorney
- - What Are the Requirements for Corporate Bankruptcy Proceedings?
- - What Are Corporate Bankruptcy Proceedings?
- 3. The Attorney's Areas of Assistance
- - The Corporate Insolvency Attorney's Assistance (1): Argument That the Company Was in a State of Insolvency
- - The Corporate Insolvency Attorney's Assistance (2): Argument That Liabilities Exceeded Assets
- 4. Result of the Attorney's Assistance: Decision of Corporate Bankruptcy
- - When Assistance With Filing for Corporate Bankruptcy May Be Needed
1. The Client Who Sought a Corporate Bankruptcy Attorney
This is a case in which the client who came to a corporate bankruptcy attorney had reached a state of financial collapse due to management difficulties, but obtained the court's decision on corporate bankruptcy proceedings with the assistance of an attorney specializing in corporate bankruptcy procedures.
The Client Who Requested Assistance With Corporate Bankruptcy Proceedings
The story of the client who came to the corporate bankruptcy specialist attorney to request assistance is as follows.
The client was the representative director of a small or medium-sized enterprise and was running the business diligently.
Although the company had grown smoothly in its early days, sales began to drop sharply due to the economic downturn and intensified competition.
On top of this, when a major business partner went bankrupt, serious problems arose in the company's cash flow.
The client took out a loan to secure funds as a stopgap, but the heavy interest burden worsened the management situation further.
In the end, the client decided on 🔗corporate bankruptcy and came to the corporate bankruptcy specialist attorney to request assistance.
2. Bankruptcy Explained by a Corporate Bankruptcy Attorney
The client came to Daeryun wishing to proceed with corporate bankruptcy proceedings together with a specialized attorney.
Let us take a closer look at what corporate bankruptcy is and through what procedures it is carried out.
What Are the Requirements for Corporate Bankruptcy Proceedings?
Corporate bankruptcy refers to a procedure in which, where a company is unable to bear its debts, the court, through its judgment, settles all debts and liquidates the corporation.
Through this, the company can repay its creditors fairly and can minimize the legal liability of its representative and officers.
The statutes related to filing for corporate bankruptcy are as follows.
With respect to a corporation, a declaration of bankruptcy may be made even where the total amount of its liabilities exceeds the total amount of its assets.
What Are Corporate Bankruptcy Proceedings?
The corporate bankruptcy procedure is as follows.
① Receipt of the bankruptcy petition
The court issues a decision based on documents alone, or after examination of the parties
② Declaration of bankruptcy
Approximately 1 to 2 months are required until the declaration of bankruptcy
③ Appointment and notice of the trustee
Notice of the claim filing period and the schedule of meetings
④ Liquidation of assets and examination of claims
The trustee converts assets into cash and states opinions
⑤Repayment and conclusion of the procedure
Repayment of priority claims first, followed by distribution to general claims
3. The Attorney's Areas of Assistance
The corporate bankruptcy specialist attorney closely reviewed the company's financial condition and debt relationships for the smooth progress of the corporate bankruptcy procedure.
The attorney emphasized the need for the corporate bankruptcy procedure, arguing the following.
The Corporate Insolvency Attorney's Assistance (1): Argument That the Company Was in a State of Insolvency
The corporate bankruptcy specialist attorney proved that, even after disposing of all of its assets, the company remained in a state of insolvency, unable to repay its debts.
Insolvency means a state in which a debtor has lost the ability to repay, and the company was in a situation where it could no longer devise a solution on its own.
The attorney emphasized that such economic difficulty was an important reason that ultimately left no choice but to commence corporate bankruptcy proceedings.
The Corporate Insolvency Attorney's Assistance (2): Argument That Liabilities Exceeded Assets
Under the Debtor Rehabilitation and Bankruptcy Act, where a debtor's total liabilities exceed its total assets, bankruptcy may be declared.
Due to repeated management crises and a decline in asset value, this company reached a serious financial state in which its liabilities exceeded its assets.
We emphasized that such a situation provides a clear basis that may justify the commencement of corporate bankruptcy proceedings.
4. Result of the Attorney's Assistance: Decision of Corporate Bankruptcy
The court accepted the corporate bankruptcy specialist attorney's argument and rendered a decision stating, ‘Bankruptcy is declared with respect to the debtor company.’
The client, who concluded the corporate bankruptcy procedure promptly and accurately, conveyed deep thanks.
When Assistance With Filing for Corporate Bankruptcy May Be Needed
An application for corporate bankruptcy involves procedural complexity and various legal issues, so specialized legal advisory can be said to be crucial.
At Daeryun, a 🔗corporate bankruptcy specialized attorney who has handled various corporate cases reviews legal risks and provides one-stop legal services for the financial recovery of the company.
Even after the case is concluded, the firm prevents subsequent disputes through legal review of contracts and documents, and also provides programs for psychological stability and emotional support.
If you are experiencing difficulty in a situation similar to the case above, you may entrust your case through a 🔗legal consultation appointment.
This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.
