The judicial recovery process can be the way out for restructuring a company that is facing financial problems . After all, at some point, the amount of debts the company has may be so large that there is no other way out other than this process.
However, despite seeming complex, judicial recovery works in a simple way based on a few steps . It is worth noting that the entire financial process needs to be carried out meticulously within the company with legal support and extensive documentation.
We will explain how judicial recovery works in practice and what phases the company goes through during the process , as well as tips on how to avoid it.
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How does judicial recovery work?
Judicial recovery is a resource that vietnam whatsapp number data available to business corporations and individual entrepreneurs registered for more than two years. In addition, with the new law, rural producers can also apply under specific circumstances.
However, the company cannot request recovery if it has a majority shareholder or administrator who has already been convicted of a crime provided for in the Business Recovery Law — such as fraud against creditors or violation of business secrecy.
A company only enters recovery when it is truly in an economic crisis and proves in court that it cannot meet these responsibilities , such as maintaining control of expenses, while maintaining its operations.
Understanding how the process works can help the company go through these stages with greater organization and chances of establishing a good recovery plan . Check it ou
1. Request for recovery
The first step is to start the recovery with a financial management guide for small businesses in court, presenting an initial petition and the financial situation, explanations about the crisis and justifications for the situation .
In this process, balance sheets, income statements and financial statements. In addition to extracts, financial investments and other financial documents.
Here the constant need to maintain good financial management of the business is clear. Having on hand all the documents that prove the company’s financial movements.
2. Suspension of charges
Once the request has, the request must be betting email list by the judge. If the judge accepts the request, all debt collections will for approximately 180 days.
In addition to suspending charges, the judge may order communication regarding the recovery to the Federal Public Treasury and state agencies in which the company operates.