Corporate bankruptcy attorney, I am curious about the corporate bankruptcy procedure.

Hello. This is the corporate bankruptcy attorney of Daeryun Law Firm (LLC).

The corporate bankruptcy procedure does not end simply with the filing; it proceeds step by step according to a certain flow.

First, when a corporate bankruptcy application is submitted to the court, the court reviews the submitted materials and either immediately declares bankruptcy, or if necessary, conducts a hearing by summoning the corporation's representative or creditors before declaring bankruptcy.

When the corporation files directly, it usually takes about 1-2 months from filing to the bankruptcy declaration, which may vary depending on the complexity of the case.

Once a bankruptcy declaration is made, the court appoints a bankruptcy trustee, designates the claim filing period, the first creditors' meeting, and the date for claim examination, and notifies stakeholders.

Then, the bankruptcy trustee converts the corporation's assets to cash and investigates the amount and priority of the filed claims.

Once the disposal of assets is complete, foundation claims such as wages, severance pay, and taxes are paid first, and if there is a remaining amount, it is distributed to general creditors according to their proportion.

Once all procedures are completed, the court makes a decision to terminate the bankruptcy procedure.

Corporate bankruptcy is not just a procedure for liquidating the company; it can be closely linked to the personal liability of the representative or future restart, so review and strategy formulation suited to the specific situation are important.

It is desirable to receive consultation with a corporate bankruptcy attorney from the early stage and prepare for the procedure.

For details, please check through consultation with a corporate bankruptcy attorney.