Your company deals with financial problems? Have your accounts been garnished or are you subjected to enforcement? Do not panic. Certain people, who are not informed, have the tendency to label insolvency as being an extremely serious problem. Nothing more false
What does insolvency mean as a definition? Law no. 85/2014 article 5, point 29, stipulates as follows: “Insolvency is that property state of the debtor characterized by the insufficiency of available funds to pay the due debts. “That we have debts which we must, obviously, pay. Declaring a company insolvent does not automatically mean that it is bankrupt. Insolvency is declared to obtain the protection of the Tribunal against the creditors’ pressure over the company, under the conditions in which the latter is overcome by its payments.
Practically, the state of insolvency offers you the opportunity to reorganize yourself, to rethink your plan of attack, to continue your business. When the insolvency becomes official, the enforcement is suspended and any pressure regarding any immediate payment of the claims is suspended. This means that the company reaches a critical moment, in which it is granted a certain period to rebuild its activity.