Pursuant to the provisions of the Bankruptcy Law, every entrepreneur, even if they do not employ any employees, is obliged to submit an application for bankruptcy within 30 days from the date of insolvency.

A company should be declared bankrupt when it becomes insolvent and therefore loses the ability to settle its due financial obligations. When this happens, the path opens to filing a bankruptcy petition, which is the debtor’s responsibility, although the petition may also be submitted by other entities, especially all personal creditors of the bankrupt.

The bankruptcy petition must be filed with the appropriate bankruptcy court. If it is approved, the court will issue a decision declaring bankruptcy.

At the same time, bankruptcy should always be seen as a last resort, implemented when all other methods of solving solvency problems prove ineffective. This applies in particular to restructuring proceedings, which are dedicated to indebted entrepreneurs. Thanks to it, it is possible to save the company, reduce its debt by repaying creditors in accordance with the terms of the arrangement, and thus continue to run a business.