Bankruptcy Lawyers in France - COST-EFFICIENT!
Bankruptcy Lawyers in FranceUpdated on Saturday 25th December 2021
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When a company becomes insolvent because it can no longer pay its debts, it officially goes bankrupt. There are a number of legal procedures you need to consider if you are facing such issues, and here our bankruptcy lawyers in France can help you. We are with you in this endeavor and we can offer you specialized legal advice, as soon as we take over your case. Apart from this, foreign investors can get in touch with us if they want to start a business in France.
Short facts about French Bankruptcy Law
Bankruptcy proceedings are the last stage of insolvency proceedings. In this situation, the debtor's assets are liquidated in order to cover the company's liabilities, followed by its write-off. According to French Bankruptcy Law, the company's representative must apply for the rehabilitation of the firm, approximately 45 days after it was declared insolvent and even for its liquidation if there are no other solutions. Here is what it means to declare bankruptcy, according to the law mentioned above:
- The payment obligations have not been fulfilled according to the plan of the respective company, and the activities can no longer take place under the same conditions as before.
- Debtors can be the ones who initiate the insolvency procedure. It also applies to creditors or other parties involved in the business.
- Bankruptcy is declared when the debtors intend to adopt the simplified procedure and do not have the desire to reorganize the company.
- A liquidator will be appointed to assess and administer the debtor's assets. The goods will be inventoried.
- The receivables are checked and their collection from the debtor's patrimony is monitored.
- The liquidator is empowered to sell the debtor's assets, conclude various transactions, and discharge the company's debts.
- If the debtor does not have assets in the patrimony or they are not sufficient to cover the credits and the administrative expenses, the deregistration of the debtor can be ordered.
Therefore, the bankruptcy procedure in France might seem quite complex because it involves important steps. Therefore, if you are in such a situation, it is better to turn to bankruptcy lawyers in France and benefit from specialized legal advice.
Reasons why a company goes bankrupt
There are many reasons why companies can go bankrupt. An economic crisis is often the main reason why a company can close its doors. On the other hand, the high taxes that must be paid for employees and that are not assumed from the beginning can be the reasons why a company can no longer carry out its activities properly, especially if there are no profits, according to expectations.
Optimizing the image of a company that can break into the market is important from the beginning of the business and must be maintained throughout this time. If this is neglected, the company will definitely suffer.
Digitization is another aspect to consider if you own a company. The activities must be carried out to the highest standards, in order to attract as many customers as possible. Fast production and lower costs ensure quality, but if these things are not on the company's development list, then it can eventually go bankrupt.
Another reason why a company can go bankrupt is the desire for rapid development and the wrong investments made. When the source of money runs out and the results are delayed, it means that the business plan has not been drawn up correctly and the company may experience failure instead of success.
We present below some statistical data about bankruptcy of companies in France:
- According to Banque-France.fr, over 26,900 bankruptcies of companies were registered during December 2020, November 2021.
- In the industrial sector, more than 1,700 bankrupt companies were registered in 2020, compared to more than 2,000 in October 2020.
- Accommodation and food services activities were the most affected by the bankruptcy sectors, with over 4,700 closed companies.
Working with our bankruptcy lawyers in France
The insolvency process and bankruptcy require special legal attention. That is why you need specialized legal advice, provided by a bankruptcy lawyer in France, who is fully aware of the legislation and who knows the best methods for the proper conduct of proceedings. Our clients can rely on professionalism, efficiency, and transparency when collaborating with us, therefore, we are ready to offer the best solutions, depending on the problems.
We invite you to contact our law firm in France and find out more about our legal services. We can help entrepreneurs with insolvency and bankruptcy procedures.