Bankruptcy: Understanding the Process and Implications
Recovery was established Judicial and Extrajudicial seeking remedy the situation of economic crisis and financial assets of the company, safeguarding the production source, in order to preserve the performance of its social function.
The administration procedure is to correct the mismanagement of the directors of the company. Although, in most cases, the company’s crisis is not caused by the unlawful practice.
Documents:
- Recovery Plan
- Financial Statements
- List of Creditors
Supervisory Administrator and Judicial Committee of Creditors
Requirements for granting the Judicial Recovery: Do not be bankrupt, and if the was declared extinct are the responsibilities arising therefrom, not, less than 5 (five) years, obtained grant of judicial reorganization; not, less than 8 (eight) years, obtained grant of judicial recovery plan based on the particular; not have been convicted or not, as trustee or controlling shareholder, any person convicted of the crimes provided for by law.
The recovery determines the conversion of credits. However, being convolada bankrupt, the creditors will be reassembled in the original conditions, less any amounts paid.
The decree bankruptcy judge during the court-supervised reorganization: by resolution of the general meeting of creditors, not the presentation by the debtor, the recovery plan; when there rejected the reorganization plan, for breach of any obligation assumed in the plan recovery.
May require the debtor’s bankruptcy: the debtor himself, the surviving spouse, any heir of the debtor or the executor, the shareholder or the shareholder of the debtor, any creditor.
Assumptions Order of Bankruptcy: The legal-factual assumption of bankruptcy remains the insolvency (no charge). May be ordered by the debtor bankrupt lateness or ruinous acts.
Defense Debtor: Quoted, the debtor may file objection within 10 days. (Art. 98). In applications based on punctuality, the debtor may, within the defense: 1. deposit the amount corresponding to total loans increased by indexation, interest and attorneys’ fees, in which case the failure will not be enacted. It’s called the bankruptcy filing elisir the request. The consequence of deposit Elisa is the denial of the petition for bankruptcy. 2. prove that he paid 3. challenge to prove that it is due.
Declaratory Judgement Bankruptcy: the legal act initiating the enforcement conference, as the exordium of bankruptcy itself, because it introduces the universal opinion of the breach.
Being bankrupt is directed only to entrepreneurs, can be ordered bankruptcy of an individual? Art. 81 of the Bankruptcy Act allows a bankrupt person in two cases: when referring to the individual firm because there is no clear distinction between personal wealth and assets of the company, b) when the company is unlimited liability, as being the unlimited liability there is no division between the assets of the company manager and partner, which thus may also be declared bankrupt.
Judicial Administrator:
The administrative part of the bankruptcy process and bankruptcy protection is the responsibility of the trustee, who came to replace the liquidator and the Commissioner. This is an auxiliary of justice, established in the public interest and for the achievement of the purposes of the bankruptcy process and bankruptcy. With respect to judicial reorganization, will always be appointed by the judge, while holding the appointment of suitable person, graduate, preferably formed in Law, Economics, Business Administration or Accounting. It may also be a specialized legal entity. With respect to bankruptcy, the law mentions only suitable person to trust the judge.Duties: send correspondence to creditors informing the date of the bankruptcy filing or declaration of bankruptcy, the nature, value and rating given to credit; provide promptly all information requested by the creditors concerned; demand of creditors, the debtor its directors or any information.
Fraud on Creditors:
Practice before or after the sentence that decrees the bankruptcy court to grant recovery or ratify the court reorganization, fraudulent act which results or may result in injury to creditors, in order to obtain or provide an undue advantage for himself or to others.
Titles Credits:
document required to exercise the right literal and self contained in it, and that only takes effect when you meet the requirements of the law.