Who is eligible to file for corporate bankruptcy?

Corporate bankruptcy is a legal procedure in which a company can no longer afford its debts, terminates its business, and liquidates its debts with the remaining assets.

The bankruptcy petition can be filed by the corporate representative or creditors, and if the court recognizes the bankruptcy requirements, it declares bankruptcy. Subsequently, a bankruptcy trustee appointed by the court distributes the company's property to creditors.

Corporate bankruptcy proceedings generally proceed as follows.

Bankruptcy petition>Hearing, correction order, prepayment order>Bankruptcy declaration, monetization of bankruptcy estate>Creditors' meeting and claim investigation date>Repayment of claims and distribution of bankruptcy claims>Creditors' meeting for the report of accounts

Since corporate bankruptcy procedures are complex and involve many parts requiring legal understanding (creditor objections, tax issues, wage claims, etc.), it is best to seek assistance from a specialist attorney.

Before meeting with an attorney, preparing materials such as recent financial statements and tax-related documents, debt details and creditor lists, and company-owned assets and real estate data will allow you to receive a much smoother consultation.

Corporate bankruptcy is not simply about closing a business but a procedure for legally liquidating debts and resolving legal liability issues, so please be sure to seek the help of a specialist attorney for a careful and systematic approach.