According to European regulations, entities that have fewer than 10 employees whatsapp australia contact number and whose turnover does not exceed two million euros per year are considered micro-enterprises .
It is important to note that not only a legal entity can be a micro-enterprise. Individuals ( self-employed) with employees under their charge also fall into this category if they meet the requirements we have just indicated.
In order to be eligible for the insolvency procedure regulated by the new Bankruptcy Law, a company must be considered a microenterprise and, in addition:
Having had an average of less than 10 employees on staff during the year prior to filing for bankruptcy .
Have an annual turnover of less than 700,000 euros , or liabilities of less than 350,000 euros in the last accounts closed before filing for bankruptcy.
A special procedure of a unique nature
The preamble of the law defines the special procedure for micro-enterprises as unique, because it aims to provide a solution to cases of current or imminent insolvency that give rise to bankruptcy, but also to pre-bankruptcy situations , when the entities have a high probability of insolvency.
Another feature is that an electronic system has been established to speed up the procedures. There are a series of forms available electronically for completion and download. These allow the interested parties to communicate and inform the Court of the data that is necessary to process the bankruptcy.
The procedure begins with a three-month negotiation phase (with no possibility of extension) during which individual actions are suspended and a business continuation plan can be drawn up or the company's disposal can be planned.
Once the negotiation phase is over, there are two options:
Continuation procedure : is an abbreviated procedure in which the debtor company and its creditors attempt to reach a solution to the insolvency that allows the entity to continue its activity.
Liquidation procedure : if the situation of the micro-enterprise is so complicated that continuing its activity has become unviable , its assets are liquidated. This liquidation can be done with or without transfer of the company as a going concern.
If at least 85% of the outstanding credits correspond to public creditors, the continuation procedure cannot be accessed and the liquidation procedure must be chosen directly.
Individuals who are considered micro-enterprises
In the case of self-employed persons who are considered micro-enterprises, after either of these two itineraries or procedures, if there are still outstanding debts, they can undergo a second chance procedure to obtain the exoneration of the unsatisfied liabilities. This could completely eliminate their debts.