A company's insolvency
Insolvency means that the debtor is constantly unable to repay its debts by their due date. In such a case, the payment difficulties are not only temporary.
Seek help before it is too late
If your company's payment difficulties persist, it may become insolvent. If you tackle the payment difficulties early enough, you can start rehabilitating your business when there are still good chances of success. In the best case, you will avoid insolvency altogether.
Contact the following to get help for addressing your company's payment difficulties:
- your regional business development company
- your accountant.
If your company becomes insolvent despite the action taken, you should file for insolvency proceedings suitable for your company.
The options are:
You should seek corporate reorganisation if your company has chances of repaying its debts and becoming operational again. As a sole trader, you can also use the debt arrangement for a private person.
If your company’s situation is so hopeless that there is no solution in sight, you may file for bankruptcy.