Insolvency proceedings affect many areas concerning the operation of a bankrupt company. The effects of bankruptcy can extend to actions taken by entrepreneurs in the period before bankruptcy, during bankruptcy proceedings and also after bankruptcy. Many times questions and doubts arise, because each company's case is unique and unrepeatable. Bankruptcy regulations may seem difficult, especially for people who do not deal with them on a daily basis. Industry jargon seems to be completely incomprehensible, and the entire procedure is not entirely clear. The matter is also not made any easier by many myths circulating on the Internet and in society about economic bankruptcyIt is also worth noting that bankruptcy law provides different consequences for individuals conducting business businessand others for other forms of business.
Many people try to carry out property transactions on their own, in order to preserve possessions and protect them from sale by the trustee. Unfamiliarity with the law can be perplexing if the ineffectiveness or invalidity of such actions is raised in bankruptcy proceedings, and such situations are extremely common.
The main objective of opening insolvency proceedings is debt relief. It should be borne in mind that insolvency proceedings are a judicial process and require a significant degree of formality and timeliness. Failure to comply with formal requirements or to meet strict deadlines may defeat the purpose of conducting insolvency proceedings.
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