Debtor – “I’m bankrupt. What now!?” First of all, you should consult a lawyer immediately. In fact, the insolvency procedure is a judicial process, in which only lawyers can intervene, in addition to the fact that legal advice carried out by any entities other than lawyers is considered crime.
DEBTOR: Individual Person
A bankrupt person has basically two alternatives:
PAYMENT PLANS
Insolvency is a comprehensive procedure, which encompasses not only the entirety of the debtor’s assets, but also all of its creditors.
With the approval of the payment plan, the insolvent debtor is allowed to pay all of his overdue debts in instalments.LIABILITY RELIEF AND FRESH START
If it is not possible to draw up a payment plan or if it is not approved within the scope of the insolvency proceedings, the insolvent debtor has the possibility, under certain conditions required by law, to benefit from the exoneration of the remaining liabilities, also known as in slang for ‘fresh start’, ‘debt relief’ or ‘debt forgiveness’.DEBTOR: Companies
INSOLVENCY PLAN
If it is economically viable, the insolvency procedure will then aim to settle its liabilities by presenting a payment plan, as well as revitalizing the business through an insolvency plan, also known as a recovery plan.SALE OFF
If it is not possible to draw up a recovery plan, the insolvency procedure will aim to satisfy creditors’ interests by selling the company’s assets.