Q: When should I consider bankruptcy?
A: When it is believed that the company will have difficulty paying its debts in the future (so-called insolvency).
There are multiple ways to conduct business restructuring as defined by law.
Possible options include civil rehabilitation, corporate reorganization, specified mediation, and special settlement.
This is stipulated in the Civil Rehabilitation Law. Management, creditors and other interested parties discuss and create a rehabilitation plan. Conversely, if it is unlikely that the rehabilitation plan can be created and put into practice, other methods should be considered.
This method is based on the Corporate Reorganization Act. This method is characterized by a change in management. A person appointed by the court will proceed with the proceedings.
Specified Conciliation is a method in which the company and the creditor discuss in court. This method is difficult to use in situations where discussion is not possible.
Special settlements are provided for in the Companies Act. This procedure is supervised by the court. Since this is a settlement procedure, it is assumed that the company has been dissolved.
If it appears difficult to resolve the insolvency even with the above procedures, bankruptcy should be considered.
Q: What preparations are necessary when filing bankruptcy?
A: Company registration (certificate of all matters)←Can be obtained from the Legal Affairs Bureau.
Minutes of Board of Directors meetings (*In the case of a company that does not have a board of directors, the minutes must be agreed upon by a majority of the directors)
List of creditors (with names, addresses, and contact information of creditors)
Inventory of property (real estate, personal property, savings, company-owned vehicles, insurance in company name, etc.)
Financial report (which includes balance sheet and income statement)
There are other documents that should be submitted by the company. The above items should be considered mandatory documents.
Q: How much are the legal fees?
A: When entrusting a case to an attorney, there will be an initiation fee, court prepayment, administration fees, and actual expenses.
You can file on your own, but it requires a lot of study.
If an individual completes the process, omissions or errors may occur, and the petition may not be approved.
It is recommended that you delegate this task to an attorney, as he or she will handle the process with precision.
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