Purpose of insolvency
Insolvency aims to fairly satisfy creditors when a company faces a difficult economic situation — defined as serious, ongoing difficulty meeting obligations due to liquidity shortages or inability to secure credit.
When does insolvency exist?
A debtor is insolvent when unable to meet due obligations. For companies, insolvency may also be declared when liabilities clearly exceed assets, based on accounting evidence.
Who can file for insolvency?
- Corporate entities and commercial companies ;
- Individuals (personal insolvency) ;
- Estates ;
- Associations, cooperatives, and other autonomous assets.
Declaration process
The debtor files with the competent Court, submitting:
- Documents proving activity decline;
- Evidence of inability to meet obligations.
The Court reviews and issues a formal insolvency judgment.
Immediate effects of declaration
- No new debt collection actions permitted against the debtor;
- Ongoing collection suspended during proceedings;
- Major legal acts require approval from the appointed Insolvency Administrator.
Personal insolvency & debt exoneration:
Individuals may qualify for exoneration of remaining liability — forgiving unpaid debts after asset liquidation or within 5 years post-closure, providing a genuine “fresh start”.
How we assist you:
- Document gathering and Court application preparation;
- Full procedural oversight and Court representation;
- Insolvency Administrator coordination;
- Creditor meeting attendance and negotiation support