The financial situation of a company, whatever its status, can be handicapped for many reasons. SAS, SARL, EURL, SNC or sole proprietorship can go bankrupt at some point in their existence. An inability to pay its debts, problems with its debts, these insurmountable difficulties can amplify and lead the company towards a state of insolvency.
At the end of a suspension of payments, any company, regardless of its legal status, will have to file its accounts and file for bankruptcy either with the commercial court or with the tribunal de grande instance. To better anticipate the phenomenon, it is important to understand what a bankruptcy filing is. How to file for bankruptcy? How much does it cost to file for bankruptcy? Find out more in this article.
What is a bankruptcy filing?
In the event that a company is no longer able to pay its debts and settle its debts, it is then in a state of insolvency. To obtain the status of suspension, it will have to make a declaration of suspension of payments, or DCP. In legal terms, we will talk more about filing for bankruptcy, or filing for bankruptcy. Filing for bankruptcy consists, among other things, of filing annual accounts before a tribunal de grande instance, hence the expression.
To be in the status of bankruptcy following a bankruptcy filing is, in a way, be unable to manage its annual accounts due to insufficient assets. A bankrupt company that files for bankruptcy is no longer able to settle its debts, in particular the salaries of employees, the financing of suppliers, the payment of contributions to Social Security, etc.
How to file for bankruptcy: administrative documents
Filing for bankruptcy is not necessarily an easy act to understand for the business owner who has to deal with insurmountable difficulties. The obligation to file for bankruptcy is a legal act that any company in a state of cessation must carry out either with the commercial court or with the tribunal de grande instance, depending on the legal status of the company.
First, you will need to complete a declaration of suspension of payments. This is Cerfa document n ° 10530. In this document, you must mention the company's available assets, off-balance sheet commitments, information on the annual accounts, as well as any additional useful information. The bankruptcy of this file will be made in 4 copies with the tribunal de grande instance, or the commercial tribunal.
In addition to the legal document that is the bankruptcy filing, you must also provide a copy of the identity document of the head of the company or his legal representative, and an extract of the company's registration in the trade register. . For the opening of the legal procedure, it is essential to make known the annual accounts and the cash position of the company for one month, as well as the state of pledges.
Filing for bankruptcy: process and consequences
Filing for bankruptcy is an act that must be done within 45 days of the company's state of insolvency. Within 15 days of filing for bankruptcy, the commercial court or the tribunal de grande instance will summon the business manager or his representative. This hearing may be supervised by a chartered accountant or a lawyer. The court will have to examine the financial situation of the company, based on the information and documents provided upstream by the latter. At the end of the hearing, the judicial representative will present the court's recommendations and observations.
Following a bankruptcy filing, a company will be directed to a recovery or a judicial liquidation. In the first case, judicial recovery will be possible, under certain conditions. In the second case, judicial liquidation is the only possible option, and we will then have to think of resale.
How to file for bankruptcy of an SAS?
The filing for bankruptcy of a SAS or a Simplified Joint Stock Company must be made with the commercial court of the company's head office. 15 days after the date of making this deposit, the bankrupt company will be summoned for a hearing, at the end of which it may be subject to reorganization or liquidation.
How to file for bankruptcy of a sole proprietorship?
Since sole proprietorships fall under the category of commercial enterprises before the law, filing for bankruptcy of a sole proprietorship in insolvency will have to be done with the commercial court of its seat. However, in the event that the nature of the activities of the company is liberal, the bankruptcy filing will be done instead in the high court. After filing for bankruptcy, the court can put it into receivership or liquidation.
How to file for bankruptcy of a EURL?
Arrived at a point where a EURL, or Sole Proprietorship with Limited Liability, can no longer pay its debts and settle its debts, it finds itself obliged to file for bankruptcy. The bankruptcy filing of a EURL is made with the commercial court where its head office is located.
How to file for bankruptcy of an LLC?
From a legal point of view, the SARL, being a commercial company, falls into the same category as a EURL. The Limited Liability Company must file for bankruptcy with the commercial court of its registered office, in the event that it is in a state of cessation. Within 15 days of the filing, the court will deliver its judgment, and publicly announce whether the company is in reorganization or simplified liquidation.
How much does it cost to file for bankruptcy?
Filing your business for bankruptcy obviously comes at a cost. However, we cannot determine a fixed rate, given that the expected cost depends on several parameters, in particular the competent court and the parameters of the case (complexity, processing time, etc.). In the event that you hire a lawyer or an accountant, you will also need to plan for other expenses and fees.
Get tailor-made bankruptcy assistance with a professional
SAS, sole proprietorship, EURL or SARL, when a company is in a state of insolvency, it is obliged to file for bankruptcy. Filing for bankruptcy will then allow the court to assess its financial situation during an observation period, and to decide on any possible solutions between reorganization and judicial liquidation.
To better take into account its case and to obtain unconditional support in such a situation, the company may contract the assistance of a lawyer, an accountant or an agency specializing in this kind of legal case. , who will be able to provide him with precious help.
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