Can I continue running my company despite insolvency?
March 14, 2023 | 30,00 EUR | answered by Emma Fischer
Dear bankruptcy lawyer,
My name is Hanna Stolzheim and I have been running a small family business in the textile processing industry for the past five years. Unfortunately, in recent months, economic problems have been piling up and I am now faced with the looming insolvency of my company.
Currently, my company is in a difficult financial situation as revenues have significantly decreased and the operating costs can no longer be covered. I am deeply concerned about the future of my company as insolvency is inevitable if nothing changes.
My question to you as an experienced bankruptcy lawyer is: Is there a way to continue operating my company despite the insolvency? Are there specific legal steps I can take to prevent or at least delay insolvency? What options are available to me as a business owner in this difficult situation?
I would greatly appreciate it if you could offer me your expert advice and support in this precarious situation. I am hopeful for your assistance in helping me prevent my company from facing financial collapse.
Sincerely,
Hanna Stolzheim
Dear Mrs. Stolzheim,
Thank you for your inquiry and trust in my expertise as a lawyer specializing in insolvency law. I am sorry to hear that your family business is struggling with economic difficulties and is now facing the threat of insolvency. In this challenging situation, it is important for you to inform yourself early on about your legal options and take appropriate measures if necessary.
Firstly, it is important to understand that insolvency does not necessarily mean the end of your business. There are various ways to avoid or at least delay insolvency. One of these ways is to initiate insolvency proceedings in the form of an insolvency plan. This is a restructuring process where efforts are made to put the company back on solid financial footing through targeted restructuring.
An insolvency plan typically involves creditors of the company waiving a portion of their claims or receiving staggered repayments. Measures such as reducing staff, selling assets, or making changes to the business model can also be included in the insolvency plan to improve the company's financial situation.
Another possible step to avoid insolvency is to apply for an out-of-court debt settlement procedure. In this process, you try to reach an out-of-court agreement with your creditors to restructure your debts and rehabilitate the company.
It is important that you seek the advice of a specialized lawyer in insolvency law early on to analyze your individual situation and develop suitable measures together. An experienced attorney can help you understand the legal framework, negotiate with creditors, and formulate an insolvency plan.
I am available to discuss your specific situation and assist you in finding solutions. Please do not hesitate to contact me to schedule a consultation.
Sincerely,
Emma Fischer, Lawyer specializing in insolvency law
