Bankruptcy Lawsuits

A bankruptcy lawsuit is a procedural lawsuit initiated with the aim of proving a merchant's failure to pay a commercial debt. The amount in question should be undisputed and specified. The reason for the delayed payment in question is usually financial turmoil and hardship on part of the merchant. These problems also impact the merchant's credit, making him a risk to other creditors. To remedy this risk, liquidation of all of the merchant's assets can be carried out as a means of protecting the creditors' rights.

Notably, a creditor of outstanding debt is given the right to request bankruptcy of the debtor, if the latter's domicile is unknown, or if there is evidence that he has 'fled the country' due to his financial situation. If evidence is submitted indicating that the merchant is no longer making due payments, a judgment for bankruptcy will be issued, restricting the merchant's ability to deal with, or otherwise dispose of the funds allocated to the