If a company decides to close, whether through voluntary dissolution/liquidation or is forced into bankruptcy/enforced liquidation, and it owes you money from an unpaid invoice, it can be difficult to know what steps to take. It is essential to make yourself known as a creditor so the person responsible for the company’s assets can include you in the distribution. Seeking Document Related Services can help ensure your claim is properly recorded and processed.
In some cases, a company may be closed in the public’s best interests, or because a creditor initiates the process. This could involve a petition for closure or an application for a bankruptcy declaration from the competent court (in the UK and Italy, respectively). In Switzerland, bankruptcy proceedings are initiated by a court declaration following an application of over-indebtedness or insolvency from a creditor or shareholder. Such legislation empowers creditors to take action against the company and actively pursue payment. If successful, the creditor is included in the distribution plan prepared by the bankruptcy administrator to ensure they are paid.
In Italy, once the liquidation process begins, the company enters a state of “pending dissolution” for up to a year. This ensures all taxes and debts are cleared before final dissolution. Creditors may also apply for a bankruptcy declaration against the company, after which they are placed on an official list and the court oversees all assets and debts.
When a company is dissolving, there is usually a legal requirement to notify third parties, often through publication in a national newspaper, to alert creditors of the situation. For instance, in Belgium, the appointed notary public must publish the notice in the Moniteur Belge. In Poland, creditors have six months to come forward with their claims, while in Hungary, details of the company’s registered seat and contact information must remain publicly available during dissolution.
The high court may also become involved in certain closures, such as bankruptcy or enforced liquidation. This intervention can be particularly valuable if a significant sum is owed. In some jurisdictions, such as Latvia, the government covers remaining debts if the company’s assets are insufficient, offering added protection for creditors.
Other options for creditors include a payment declaration or a payment agreement. A payment declaration is an official document, often prepared as part of Document Management Services, to confirm that all debts are settled, after which the company’s shareholders announce the dissolution. In Spain, under the 2003 Bankruptcy Act, creditors and companies may agree to repay debts in instalments, with dissolution finalised only after the agreement is fulfilled.