Bankruptcy or sequestration Bankruptcy or sequestration is a legal order that confirms to your creditors that you are not able to repay the borrowed money. This implies that you agree to pay what you can afford for 48 months, and that your trustee collects in your assets that are not excluded. These assets are converted into cash to cover the costs of bankruptcy and your debts. The person responsible for overseeing the implementation of the debtor`s proposals for an IVA or AVA, once approved by creditors (and members). Composition, in modern law, an agreement between the creditors of an insolvent debtor to accept an amount less than they are due to obtain an immediate payment. If it appears that a debtor will not be able to satisfy all of his creditors, or even one of his creditors, he will often agree to accept equal shares in what he owes — for example, 25 cents on the dollar. This is where the original claims are liquidated. If the debtor does not comply with the agreement, creditors can only demand what is theirs under him and cannot demand the full amount. A legal obligation to repay a debt if the original borrower does not do so.
Directors can give guarantees to banks in exchange for the bank`s financing of their businesses. It must be proven in writing in order to be implemented. An agreement with your creditors in which they commit to receive a certain amount of money in order to settle all the funds or obligations you owe them. An IVA could be a complete and definitive solution. Informally agreed counts are called updated counts. A trust deed is a formal binding agreement between you and your creditors. As a general rule, the proposal provides that you make monthly contributions over a pre-agreed period, which is usually at least 4 years. They are protected against creditors` remedies as well as interest and expenses incurred from the date of authorization. Monthly payments are based on what you can afford. All outstanding claims at the end of the trust period are depreciated. A procedure in which a person who is unable to repay his debts enters into an agreement with his creditors on how his debts are repaid.
A person who intends to propose a voluntary agreement to his creditors can apply to the court for an injunction that, if granted, prevents bankruptcy or any other legal action against the person as long as the order is in effect. The person (usually an accountant or lawyer) who is appointed by the Department of Commerce and Industry (DTI) or by a recognized professional body as an agent, appointee, supervisor, liquidator, administrative beneficiary or director. Only such a person can hold one of these functions. Failure to comply with the terms of a composition forms the basis of an action for violation of the agreement. The debtor is not exempt from the payment obligation until he has complied with the payment rules. All debts that are part of a composition are erased as soon as a composition has been terminated. A creditor with a misjudgment can apply to the Court of Justice for an order against the property to which the debtor is of interest. This decision limits the transfer of this property and gives the creditor priority in payment over other creditors.
As with any contract, a composition with creditors must be supported by a reflection to be enforceable.