Business Crisis Unit 13: Insolvency Law

<p>Challenge the qualification if they are affected by it (D)</p> Signup and view all the answers

<p>A reasoned report for the classification (D)</p> Signup and view all the answers

<p>To avoid entering formal insolvency proceedings (B)</p> Signup and view all the answers

<p>Sale of assets (C)</p> Signup and view all the answers

<p>A forecast indicating potential insolvency (C)</p> Signup and view all the answers

<p>Judicial approval based on legal requirements (D)</p> Signup and view all the answers

<p>Pre-insolvency can involve negotiations while insolvency leads to liquidation (C)</p> Signup and view all the answers

<p>Closing down a company and liquidating its assets (C)</p> Signup and view all the answers

<p>Sufficient agreement from creditors (C)</p> Signup and view all the answers

<p>They become mandatory if a company cannot reach an agreement. (C)</p> Signup and view all the answers

<p>Debts with general privilege last (A), Ordinary debts second (B), Debts with special privilege first (C), Subordinated debts third (D)</p> Signup and view all the answers

<p>Economic feasibility of payments (B)</p> Signup and view all the answers

<p>Opening of the winding-up phase (B)</p> Signup and view all the answers

<p>Unsecured loans (C)</p> Signup and view all the answers

<p>Winding-up phase (B)</p> Signup and view all the answers

<p>Minimum adhesions from creditors (A)</p> Signup and view all the answers

<p>Declaration of dissolution (D)</p> Signup and view all the answers

<p>Fraud or serious fault by the debtor (B)</p> Signup and view all the answers

<p>To legally order the insolvency situation and defend creditors' rights. (C)</p> Signup and view all the answers

<p>When a creditor has an enforceable title of debt and there is insufficient equity for execution. (C)</p> Signup and view all the answers

<p>2 months from the knowledge of insolvency. (A)</p> Signup and view all the answers

<p>They are suspended from decision-making on equity disposals. (A)</p> Signup and view all the answers

<p>Any natural or legal person involved in the insolvency. (C)</p> Signup and view all the answers

<p>Judicial authorization is required for asset disposal. (B)</p> Signup and view all the answers

<p>Voluntary proceedings are requested by the debtor, while necessary ones are requested by creditors. (B)</p> Signup and view all the answers

<p>Assets may only be disposed of with judicial authorization, except for operational necessities. (C)</p> Signup and view all the answers

<p>The list of liabilities and inventory of goods (C)</p> Signup and view all the answers

<p>Insolvency debts arising before the judicial declaration (B)</p> Signup and view all the answers

<p>To evaluate the debtor's assets and potential for business sale (D)</p> Signup and view all the answers

<p>Claims against the entire insolvency estate (B)</p> Signup and view all the answers

<p>Contracts maintain their validity (A)</p> Signup and view all the answers

<p>To maximize business profit (B)</p> Signup and view all the answers

<p>Personal items of the entrepreneur (C)</p> Signup and view all the answers

<p>Cancellable detrimental acts of asset disposition (C)</p> Signup and view all the answers

Insolvency that occurs due to unforeseen circumstances or events beyond the debtor's control.

Insolvency that occurs due to intentional actions or negligence by the debtor, leading to financial distress.

An individual appointed by a court to manage the assets and affairs of an insolvent company.

The process of determining whether an insolvency is fortuitous or fraudulent.

Individuals or entities who may suffer financial harm due to a company's insolvency.

A pre-insolvency strategy used by businesses to address financial difficulties by proposing changes to their financial obligations, operations, or structure. These plans aim to avoid formal insolvency proceedings and allow the business to continue operating.

A legal process that a business can initiate when facing potential insolvency. It allows the business to negotiate with creditors and propose restructuring plans without entering formal insolvency proceedings.

A formal legal process initiated when a business is unable to meet its financial obligations. This process involves court supervision and aims to either restructure the business or wind it up.

A state where a business is unable to pay its debts as they become due.

A process in insolvency proceedings where a business ceases operations and its assets are liquidated to pay creditors.

A solution in insolvency proceedings where a business reaches an agreement with its creditors to restructure its debts and continue operating.

For a restructuring plan to be approved, it needs to be accepted by a specific proportion of creditors, meet legal requirements, and be validated by a restructuring expert appointed by the court.

In pre-insolvency proceedings, businesses are expected to act diligently in exploring restructuring options to prevent formal insolvency.

A requirement for an insolvency proceeding, meaning there must be multiple creditors involved, not just one.

A condition where a debtor faces significant financial difficulties affecting their ability to pay debts, making an insolvency proceeding necessary.

The obligation of a debtor to initiate insolvency proceedings within two months of becoming aware, or reasonably should have become aware, of their insolvency situation.

A court-appointed individual who manages the insolvent debtor's assets and operations during an insolvency proceeding.

An insolvency proceeding initiated by the debtor themselves when they face financial difficulties.

An insolvency proceeding initiated by a creditor with an enforceable title of debt and insufficient assets for execution.

The declaration of insolvency leads to various effects, including the suspension of the debtor's rights to dispose of assets and the appointment of an insolvency receiver.

A legal process initiated when a debtor cannot meet their financial obligations. It aims to fairly distribute the debtor's assets among creditors.

A comprehensive record of all debts owed by the insolvent debtor, including their amounts, types, and creditor details.

A detailed accounting of all the debtor's property, goods, and rights, including their value and any encumbrances.

Debts incurred by the debtor before the official declaration of insolvency.

Claims arising after the insolvency declaration, including expenses related to the insolvency proceedings.

A legal remedy to undo detrimental acts of asset disposition made by the debtor within the two years prior to the insolvency declaration.

The debtor's legal obligation to cooperate with the judge and insolvency administrator during the proceedings.

Insolvency does not automatically invalidate existing contracts unless specifically stated by law.

These are the first debts to be paid in insolvency proceedings. They have a higher priority due to their nature or legal standing.

These debts have a lower priority than debts with special privilege but a higher priority than ordinary debts. They are typically related to public law obligations.

These are debts that do not have any special or general privilege. They are typically the last debts to be paid in insolvency proceedings.

These debts have the lowest priority in insolvency proceedings. They are often related to late payments or penalties.

An agreement reached between a debtor and its creditors where the debtor proposes a payment plan to settle its debts. The creditors agree to accept the plan, potentially offering some leniency.

This is the process of closing down a company that is insolvent. Assets are sold and the proceeds are used to pay off debts according to their priority.

This refers to intentional actions taken by a debtor that contributed to their insolvency, such as misrepresenting financial information.