Corporate lawyer bankruptcy application review and bankruptcy application form drafting.

Law firm Veat received a request from startup A (hereinafter referred to as “the client”) to support the bankruptcy filing process.

The client faced several difficulties, including failed investment attraction, discord between co-founders, and failed acquisition, resulting in a precarious situation where liabilities exceeded assets, leading to the decision to file for bankruptcy.

The Veat Startup Consulting Team thoroughly reviewed the company's overall situation, including an overview of the business, shareholder status, capital status, employee status, and asset and liability status. In particular, it identified the cause of bankruptcy and the circumstances leading the debtor to bankruptcy, assisting the client in drafting the bankruptcy application.

The Veat Startup Consulting Team carefully considered the company’s current situation, as well as possible legal options and their pros and cons, to advise the client in making the best decision.

It is advisable to proceed with the bankruptcy proceedings with a corporate lawyer.

 

The bankruptcy process is not simply a debt settlement process, but a legal means to protect the company's assets and pay as many debts as possible.

The bankruptcy process involves proceeding with a court ruling that liquidates the company’s assets to distribute them to creditors in order of priority, when the company is not in a situation to repay all debts with its assets.

The purpose is to ensure that creditors receive equal debt settlement and to liquidate unrecoverable companies to prevent additional losses.

When drafting a bankruptcy application, it is important to clearly substantiate the grounds for bankruptcy due to payment inability or excessive debt. The company’s detailed information must be accurately recorded in the bankruptcy application, and the court will appoint a bankruptcy trustee to proceed with the process, so it is important to record assets, liabilities, and other legal relationships accurately and reliably.

The bankruptcy process is complex, and it is often difficult for management to objectively assess the management status. Therefore, we recommend seeking the assistance of a legal professional to objectively evaluate the company’s assets and liabilities during the bankruptcy application process and comprehensively review the validity of the bankruptcy application.

Law firm Veat has been selected as a notable firm in the ‘Fintech Financial Services/Technology-Based Startup Consulting’ category by THE LEGAL 500, a global law firm ranking agency. We provide comprehensive legal services to companies experiencing legal difficulties, such as bankruptcy applications, and assist in the growth and operational processes of various startups by providing legal advice, exploring new business opportunities or restructuring existing businesses.

In particular, as a trusted partner growing together, Law firm Veat provides regular legal services to understand the difficulties of various companies, resolve complex legal procedures, protect the client’s legal rights, and achieve the best results.

If you need help with corporate legal issues, please contact Law firm Veat.

Thank you.

Law firm Veat