In bankruptcy proceedings, the debts of an indebted and insolvent company are determined, its assets are sold, the funds are distributed among the creditors and the company is closed down. The creditors exercise the supreme decision-making power in the bankruptcy estate. A bankruptcy may also lapse if there are not enough funds in the bankruptcy estate. It can, however, continue under public receivership if additional investigations on your company are considered necessary.
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In a bankruptcy, an insolvent and unprofitable company is closed down after a court process.
Phases of bankruptcy proceedings
After the bankruptcy proceedings are completed, your company is closed down.
Lapse of bankruptcy and public receivership
A bankruptcy may lapse if there are not enough funds in the bankruptcy estate. The bankruptcy proceedings can continue under public receivership.