In contrast to personal bankruptcy, there is regular bankruptcy. Because entrepreneurs also have the opportunity to file for bankruptcy with their company. If this is the case, one speaks of corporate bankruptcy. A special insolvency procedure is used for such corporate insolvency. The aim of this is to free the bankrupt company from its debts or to manage it after over-indebtedness and then to reorganize it. Process of a corporate bankruptcy procedure But how does such an insolvency procedure actually work? Who is responsible for implementation and are there any differences in terms of the type of company? Three stages of corporate bankruptcy The procedure for standard insolvency normally takes place in three consecutive phases. It begins with filing the application for bankruptcy, followed by an opening procedure and finally ends with the actual bankruptcy procedure. Application to open insolvency proceedings Before a regular procedure can even be initiated, a…

Corporate bankruptcy rarely comes suddenly. Often times it is the result of a failure to pay attention to a number of risk factors. In order to avert impending bankruptcy, entrepreneurs should therefore always keep an eye on the most common reasons and take countermeasures if necessary. Rarely is it just one factor that leads to bankruptcy. The combination of several reasons over a longer period of time often represents the obligatory drop that brings the barrel to overflowing. The most common reasons for corporate bankruptcy Because of this, it is worthwhile for every type of entrepreneur, whether experienced or just a beginner, to find out about the most common risk factors. Bad funding There are supposedly lucrative financing offers lurking around every corner. Founders with little equity in particular tend to take advantage of this quickly. An investment through borrowed capital can often contain hidden and high interest rates. If…

Bankruptcy doesn’t always have to mean negative things. Above all, entrepreneurs with courage, passion and capital often see corporate bankruptcy as an opportunity. As an opportunity or possibility to acquire an already existing company cheaply and to lead it back on the path of success with the right measures. But even if you yourself are the victim of a bankruptcy, this does not have to mean an unchangeable defeat. The way out of bankruptcy is certainly not a walk in the park, means a lot of w ork and above all requires one thing: a lot of communication, but it is feasible. Because as long as you bring everyone involved, such as customers, suppliers, creditors and co. To one table, you can use a company bankruptcy as an opportunity for a fresh start. When does a company go bankrupt? But sometimes it is not really clear when exactly a company…