Are there ways to prevent bankruptcy?
October 14, 2023 | 45,00 EUR | answered by Helma Beck
Dear bankruptcy lawyer,
My name is Benjamin Hacker and I am currently facing a difficult financial situation. Due to economic problems in my company and a decreasing number of orders, I am on the brink of bankruptcy. As the managing director, I am responsible for my employees and the future of the company, so it is very important to me to avoid bankruptcy to prevent worse consequences.
Currently, we are in a critical condition as revenues have significantly decreased and costs remain high. I am very concerned about the future of the company and wonder if there are still possibilities to avoid bankruptcy. I have already tried to cut costs and acquire new customers, but so far without success.
Therefore, my question to you is: Are there any legal options or strategies to prevent an impending bankruptcy? What steps can I take to stabilize the financial situation of my company and possibly avoid bankruptcy after all? I am grateful for any help and support, as it is very important to me to maintain the company and the jobs of my employees.
Thank you in advance for your support.
Sincerely,
Benjamin Hacker
Dear Mr. Hacker,
Thank you for your message and your trust in my expertise in the field of insolvency law. I am sorry to hear that you and your company are currently facing a difficult financial situation. It is understandable that as a managing director, you want to do everything possible to avoid insolvency and secure the future of the company and the jobs of your employees.
In such a situation, it is important to act early and seek professional advice. There are indeed legal options and strategies to prevent impending insolvency. Here are some steps you can take to stabilize the financial situation of your company and avoid insolvency:
1. Financial analysis: Start by conducting a detailed analysis of your financial situation. Review your income and expenses, identify potential cost-saving opportunities, and try to find alternative financing options.
2. Liquidity management: Ensure that you have sufficient liquidity to cover short-term liabilities. Review your cash flows and try to extend your payment terms or negotiate alternative payment arrangements with suppliers.
3. Restructuring plan: Develop a restructuring plan that includes measures to reduce costs, increase revenue, and restructure debts. This plan should be realistic and long-term oriented.
4. Negotiations with creditors: Initiate discussions with your creditors and try to reach an out-of-court agreement. It may be possible to adjust payment terms or agree on installment payments.
5. Insolvency advice: Consult with an experienced insolvency advisor or lawyer who can assist you in creating an insolvency plan and communicating with creditors.
It is important to note that each situation is unique and there is no one-size-fits-all solution. Depending on the severity of the financial crisis, it may also be necessary to consider insolvency. In this case, an orderly insolvency should be pursued to protect the interests of all parties involved.
I strongly recommend seeking professional help promptly to find the best possible solution for your company. Feel free to contact me for a personal consultation to discuss your situation in more detail and develop specific measures.
I wish you success in overcoming your financial challenges and am here to support you.
Best regards,
Helma Beck
Insolvency lawyer
