Insights
Adjudication of Bankruptcy Without Prior Debt Enforcement
As a general rule, creditors with outstanding claims must first initiate debt enforcement before they can file a petition in bankruptcy. However, if a creditor's interests are at particular risk or if a company has completely ceased making payments, bankruptcy can be opened without prior debt enforcement.
Bankruptcy from a Creditor’s Perspective
Bankruptcy has serious consequences not only for the owners and employees of the affected business, but also for its business partners. It is therefore important for creditors to understand how bankruptcy proceedings work and what rights they have.