Corporate Bankruptcy Assistance by a Jeonju Law Firm | Successful Corporate Bankruptcy as a Result of the Jeonju Law Firm's Assistance

The client who received a consultation was an employee at a well-known health functional food manufacturing company.

At some point, the client wished to manufacture health functional foods directly, so the client left the company together with some colleagues, planned a business, and started a startup.

However, the client overlooked the fact that brand recognition is most important for health functional foods, and sales were poor.

As a result, the company received a low commercialization score, the research funding it had received from the government was reclaimed, and the company's management deteriorated severely.

The client became unable to pay wages to the colleagues who had worked together, and concluding that this difficulty could not be overcome, the client eventually came to consider corporate bankruptcy.

In the meantime, the client heard about an acquaintance who had received significant help through Daeryun Law Firm's Rehabilitation and Bankruptcy Group, so the client visited Daeryun's Jeonju office and requested assistance with filing for corporate bankruptcy.

Corporate bankruptcy refers to a procedure in which, when a corporation cannot repay all of its debts with its assets, bankruptcy is declared and the corporation's assets are distributed to the creditors.

This serves to ensure that all creditors receive an equal distribution of their claims, to wind up a corporation that cannot be rehabilitated and prevent further losses, and to help the corporation's representative make a fresh start.

So in which cases is it recommended to file for corporate bankruptcy?

(1) When the corporation has assets

Through the corporate bankruptcy procedure, the assets held by the corporation can be converted into cash to repay its debts.

(2) When employee wages cannot be paid

Through the corporate bankruptcy procedure, wages, severance pay, and similar amounts can be paid.

(3) When there are unpaid taxes

Under the tax law, shareholders holding a stake of 50% or more bear responsibility for unpaid taxes.

Through the corporate bankruptcy procedure, taxes can be paid on a priority basis.

🔗 Learn About Eligibility to File for Corporate Bankruptcy

🔗 Learn About the Documents and Costs Needed for Corporate Bankruptcy

As the client's commercialization score declined, the client could no longer receive the government subsidies it had been receiving.

As a result, the business was facing a halt in operations, and with wages owed to employees in arrears, it was argued that the business could no longer be operated.

Based on the client's company financial records and certificate of indebtedness, Daeryun's Jeonju office established that the company was in a state of excess liabilities.

It was argued that most of the client's initial business funds consisted of debt, that repayment had not been properly made, and that the resulting interest had grown to an unmanageable level.

In the case of corporate bankruptcy, a variety of documents are required for the filing, and gathering the supporting materials to establish the grounds for bankruptcy is not an easy task.

Therefore, proceeding with the case together with an attorney experienced in this area can make it considerably smoother and faster to obtain a decision.

If you are facing difficulties with a corporate bankruptcy matter like the client above, you may consult with Daeryun's Jeonju office at any time and resolve your case with attorneys experienced in corporate bankruptcy.

🔗 Go Directly to Daeryun Law Firm Rehabilitation and Bankruptcy Group Legal Consultation Booking