Who is eligible to file for corporate bankruptcy?

Corporate bankruptcy is a legal procedure in which a company can no longer bear its debts, terminates its business, and settles its debts with the remaining assets.

A bankruptcy petition can be filed by the corporation's representative or a creditor, and if the court recognizes the bankruptcy requirements, it makes a declaration of bankruptcy, after which a bankruptcy trustee appointed by the court distributes the company's assets to the creditors.

The corporate bankruptcy procedure generally proceeds as follows.

Bankruptcy petition>examination, correction order, and prepayment order>declaration of bankruptcy and liquidation of the bankruptcy estate into cash>creditors' meeting and the date for the examination of claims>repayment of claims and distribution of bankruptcy claims>creditors' meeting for the reporting of accounts

In the case of corporate bankruptcy, because the procedure is complex and there are many parts that require legal understanding (such as creditor objections, tax issues, and wage claims), it is best to obtain the assistance of a specialized attorney.

If, before meeting an attorney, you prepare materials such as recent financial statements and tax-related documents, details of debts and a list of creditors, and materials on company-owned assets and real estate, you will likely be able to receive a much smoother consultation.

Corporate bankruptcy is not simply closing down a business; it is a procedure that legally settles debts and also resolves issues of legal liability, so we recommend that you necessarily approach it carefully and systematically with the help of a specialized attorney.