Discover an Effective Solution to Commercial Bankruptcy

[Toqeer Khan]

When a commercial enterprise experiences financial difficulties, it does not often have the reflex to contact a licensed insolvency trustee to resolve its problems, the trustee being rather associated with the bankruptcy of the enterprise.
However, the syndic is able to propose adequate solutions in order to give a second start to the company. The composition proposal is one of these effective solutions for any entrepreneur who is experiencing a financial crisis within his company.
What is it exactly? The composition proposal is an effective solution that offers your creditors to reduce the amount you will pay them in settlement of your debts. It is also possible to extend the repayment period for debts beyond normal credit terms. Moreover, you can even combine these two options.
While you prepare and formulate your proposal to your creditors, you continue your activities normally. On the other hand, it is not possible for you to carry out transactions outside the normal course of the business without the authorization of the trustee and this, as long as the proposal has not been approved by the creditors and the court.
Generally, the composition proposal will be preceded by a notice of intention to file a proposal which will have the effect of protecting your company from possible proceedings by your creditors.
The notice of intention will also be used to complete the reorganization of the business by granting you a maximum of six months of delay before having to submit your proposal to your creditors.
The composition proposal is available to any person or company that finds itself in a difficult financial situation, regardless of the total amount of debts owed. In addition, in the case of natural persons, a more user-friendly procedure is available, called the consumer proposal. However, this procedure ceases to apply if the total amount of the debts exceeds $250,000.
How to Proceed?
When a company encounters financial problems, it is strongly advised to make an appointment with a Licensed Insolvency Trustee. The latter will be able to analyze the situation and find a solution.
During the financial analysis, the licensed insolvency trustee will ask the entrepreneur to submit all the documents relating to the company's debts, in particular the list of creditors, financing and rental contracts, operating budgets, etc. Once the trustee has enough information about the company, he will study the situation and make his recommendations.
The Advantages of the Composition Proposal
The composition proposal offers many advantages to those who are in financial difficulty. Here are a few
• It avoids seizures by creditors
• It suspends legal recourse by creditors
• It can help you obtain the cancellation of a commercial lease
• It helps you keep your assets and continue your operations
• It can release you from certain contracts, or even cancel them.
Know that if you are going through a difficult financial situation, but you believe that the situation is not irreversible, you would probably benefit from considering the composition proposal in order to rectify your situation.
This solution will help you breathe new life into your business and get back on the right foot. All you have to do is make an appointment with one of our professional advisers.