How do I close my business in an orderly manner?

One of the most difficult moments in the commercial life of every entrepreneur is when he must make the decision regarding when to close his business. This act should not be related to the old “closing the curtain” and (trying to) forget about the problems that the company left closed, on the contrary, it has to do with effective actions that I as an entrepreneur or entrepreneur must carry out so that the business is closed in an orderly manner, without leaving problems that even in the future could mean many bad times.

This difficult time is, as many successful entrepreneurs have said, truly apparent. For many who have already gone through this situation, they realize that they learn and seek in their new ventures not to repeat the same mistakes. Before bankruptcy existed, an extremely slow and cumbersome procedure that, given its characteristics, was only accessible to a few because, paradoxically, it was an expensive, ineffective and, above all, inefficient procedure.

As of 2014, however, this situation changed with the introduction of a procedure that came to completely replace bankruptcy, which we now know as Liquidation.

The Liquidation of Companies and Debtors was incorporated with Law 20,720, also known as Insolvency and Re-Entrepreneurship Law or New Bankruptcy Law, and sought to change the focus from the payment of Creditors, which in practice proved to be practically a chimera that It eternalized procedures and demonized the indebted towards the Debtor’s re-undertaking.

This change is achieved by establishing a universal procedure in which the Debtor, in very simple terms, confesses before a court all his debts, the assets he has available for the payment of these debts, accompanies information regarding his workers and other documents of a character accounting, as the balance of the company. Once the procedure has started, a procedure administrator is appointed, previously known as a trustee and who is now called the Liquidator, who must take the assets of the Debtor, obtain the best possible price for them and, with the result of the sale of those assets, pay them Creditors who, in addition, have tax benefits that will be analyzed at another time.

The most interesting, and possibly the biggest change driven by the Insolvency and Re-Entrepreneurship Law, is the existence of what is called the discharge or discharge of debts, which means that, at the end of the procedure, everything that is not it has reached to pay with the object of the debts it is extinguished, that is to say, it does not remain “in the air. As indicated, once the procedure is finished, the debts will no longer exist and, therefore, they will not be collected in the future.

This is a very beneficial procedure for the Debtor, who will be able to rehabilitate himself financially and only requires an expert advisor who will guide you from before the presentation of the procedure, during and afterwards so that you can resume. At Sottolichio & Aguilera Abogados we have been working in the world of indebtedness for more than 5 years, and we have helped more than 4,000 people and companies to find the desired economic recovery. Contact us, schedule a virtual or face-to-face meeting, and let’s talk about your cas