The express bankruptcy is a quick way to dissolve a company. Once the company is executed it will dissolve and disappear. However, it must be taken into account that it is not the only way in which this procedure can be used.
The express bankruptcy can also be used to restructure the company by forming a new company. The main benefit is that you avoid entering into a long and tedious legal process. But, in addition to this, incurring in a state of liability due to insolvency is avoided, the execution of the company's debts is paralyzed, the insolvency process is streamlined and it is easier to start a new business adventure.
In this way, what this type of express bankruptcy will do is basically put an end to a business that is not going well, before ending up in a more in-depth investigation that stigmatizes the businessman or that leaves him unable to start new projects for a time. Thus, after having concluded this express modality, you can start again with the advantages already mentioned by paralyzing previous business debts.
That is to say, with this bankruptcy the company cannot be restructured as such, and as is the case with the usual bankruptcy. But it does allow you to quickly put an end to a project that has not gone well. Something that also enables the employer to be able to start quickly making use, for example, of the clients and workers that he had in the previous business, in the event that the business activity is going to be the same. Therefore, what it allows is to close a company to put an end to these problems, as long as the conditions mentioned above are met, and to be able to open another quickly.
By eliminating all the phases and having the bankruptcy declared and concluded in the same procedure, it is avoided that the company administrators can be held accountable during the bankruptcy. For all these reasons, a series of requirements must be met to be able to access this express bankruptcy.
The truth is that not all companies can take advantage of this fast modality. The first thing they must comply with is that there is an insufficiency of the active mass. It is understood as such the fact of not having enough goods and rights, also called assets, to pay the creditors of the credits against the mass. In turn, these credits against the mass are those that arise after declaring the bankruptcy, such as administrator fees, payroll, rent, etc. Thus, when the assets are not large enough to be able to pay these credits, the express contest can be requested.
However, this is not the only requirement. The insolvency situation of the company must also be explained and argued with data. For this, it will be necessary to present the annual accounts of the last three years, the relationship with creditors, the inventory, significant changes in assets and other types of data such as the workforce.