Bankruptcy administration

The bankruptcy administration is an entity with the power to intervene in a debtor company. Thus, it controls and supervises it in the framework of a bankruptcy.

In other words, the bankruptcy administration is a body that manages the judicial process that begins when a company cannot meet its financial obligations. In this way, it performs tasks such as qualifying the pending credits, according to the payment priority.

The objective of the bankruptcy administration is to ensure that the provisions established by law are complied with. This, always depending on the supervision of a commercial judge.

Role of the bankruptcy administration

The function of the bankruptcy administration is to intervene the actions of the debtor. And if this borrower is suspended, his surrogate will be monitored.

Alternatively, an administrator must be able to make decisions in the different phases that make up the contest. These are related to the life of the company, its legal situation and its accounting life.

Given their functions, it is common for the profiles chosen to be part of insolvency administrations have knowledge and experience. This, mainly in the fields of communication, management and accounting.

The bankruptcy administration is usually made up of a single administrator. Normally, this person must be a lawyer or economist with a professional career of at least five years and accredited training in bankruptcy law.

In that sense, they cannot face these tasks as administrators without the ability to manage public limited companies or limited liability companies. Similarly, individuals related to the bankrupt only in the last three years, for example, cannot be chosen.

Despite his observation and assessment work, the administrator must also act diligently during the time in which he occupies said position. Therefore, you must answer for your decisions before the debtor and / or the creditors. This, in case damages or losses are caused to the company, or if the current legislation is not followed.